Skip to content

Fuel EU Maritime - Update

The European Commission has recently announced that it has reached a provisional political agreement with the European Parliament and Council to regulate greenhouse gas emissions from the maritime sector. The FuelEU Maritime regulation aims to reduce emissions from the sector by 40% by 2030 and zero by 2050.

The maritime sector is responsible for around 13% of the EU's greenhouse gas emissions, and it has been recognized that urgent action is needed to curb this. The FuelEU Maritime regulation seeks to address this issue by introducing a system for regulating and pricing emissions of carbon dioxide (CO2) and other pollutants, such as nitrogen oxides (NOx) and sulfur oxides (SOx).

Under the proposed system, shipping companies will be required to purchase carbon credits to offset their emissions. This will be done through a new FuelEU Maritime Fund, which will finance research and development of new, cleaner fuels and technologies, as well as the deployment of zero-emission vessels. The fund will be financed by the revenues generated from the sale of carbon credits.

In addition to the creation of the FuelEU Maritime Fund, the agreement also includes the establishment of an Emissions Trading System (ETS) for shipping. This will involve the setting of a cap on the total amount of CO2 emissions allowed from ships, with allowances distributed to shipping companies based on their individual emissions histories. The allowances can then be traded between companies, providing an incentive for companies to reduce their emissions.

The FuelEU Maritime regulation is seen as a significant step forward in the EU's efforts to address climate change, as it addresses a sector that has traditionally been difficult to regulate. The agreement has been welcomed by environmental groups, who have been calling for stronger action to curb emissions from the maritime sector.

The European Community Shipowners' Associations (ECSA) welcomes the FuelEU Maritime Regulation. ECSA notes the need for the Regulation to recognize the strategic role of shipping and the need for the industry to accelerate its decarbonization efforts. In particular, ECSA welcomes the Regulation's recognition of the need to develop alternative fuels and infrastructure for bunkering. Additionally, ECSA stresses the importance of a global approach to shipping decarbonization efforts and calls for the establishment of a level playing field. 

Overall, the FuelEU Maritime regulation represents an important development in the EU's efforts to reduce greenhouse gas emissions and combat climate change. The agreement demonstrates a commitment to finding innovative solutions to the challenges posed by emissions from the maritime sector, and provides a framework for future action in this area.

What Do Buyers of Marine Fuels Need to Do To Adapt To These Changes ?

As a result of recent announcements, buyers of marine fuels will need to adapt to the new requirements set out by this regulation.

Firstly, the regulation will require buyers to use cleaner fuels. Specifically, the regulation sets targets for the reduction of the carbon intensity of fuels used by ships. This means that buyers will need to consider alternative fuels such as liquefied natural gas (LNG) or biofuels, which have a lower carbon footprint than traditional fossil fuels.

Secondly, buyers will need to ensure that their ships comply with the new regulation. The regulation will require ships to be fitted with new technologies such as exhaust gas cleaning systems or selective catalytic reduction systems, which can reduce emissions. Buyers will need to ensure that their ships are equipped with these technologies and that they comply with the requirements of the regulation.

Thirdly, buyers will need to factor in the costs associated with compliance with the regulation. The new technologies required to comply with the regulation can be expensive, and the cost of alternative fuels can be higher than traditional fossil fuels. Buyers will need to consider these costs when making purchasing decisions.

Finally, buyers may need to rethink their supply chains. The regulation may result in changes to the supply and demand for certain types of marine fuels. Buyers may need to source fuels from different suppliers or change their transport routes to ensure compliance with the regulation.

Overall, buyers of marine fuels will need to make significant changes to their operations in order to comply with the new requirements set out by Fuel EU Maritime. They will need to use cleaner fuels, ensure that their ships comply with the regulation, factor in the costs of compliance, and potentially rethink their supply chains. By doing so, buyers can ensure that they are able to operate in a more sustainable and environmentally friendly way, while also complying with the new regulatory requirements.

What Do Suppliers of Marine Fuels Need to Do to Adapt to These Changes ?

Physical suppliers of marine fuels will need to adapt to the Fuel EU Maritime legislation by ensuring that the fuels they supply comply with the regulations. They will need to provide low-carbon alternatives that meet the required sustainability criteria and are able to generate the appropriate documentation and information to support the implementation of the Fuel EU Maritime system.

Suppliers will also need to be able to offer a wider range of fuels, including alternative fuels such as liquefied natural gas (LNG) and biofuels. They may need to invest in new infrastructure, storage and transportation systems to ensure that they can supply these fuels to meet the increased demand.

In addition, physical suppliers will need to be able to provide accurate data on the carbon intensity of the fuels they supply, to enable shipping companies to monitor and report their emissions. This will require close cooperation and communication with shipping companies to ensure that the data is accurate and up-to-date.

Suppliers will also need to ensure that their supply chains are transparent and traceable, so that shipping companies can verify the sustainability of the fuels they are using. This will involve working with producers and other stakeholders to ensure that the fuels they supply meet the sustainability criteria set out in the legislation.

Finally, physical suppliers will need to be able to provide training and support to their customers to help them understand the requirements of the Fuel EU Maritime legislation and how to comply with them. This may include offering advice on fuel choices, emissions monitoring and reporting, and other related issues.

Overall, physical suppliers of marine fuels will need to be proactive in adapting to the Fuel EU Maritime legislation, investing in new technologies and infrastructure, and working closely with their customers to ensure that they can comply with the new regulations. This will require significant investment and effort, but will ultimately help to create a more sustainable and efficient maritime industry for the future.