What is Fuel EU Maritime?
Learing more about this GHG regulation.
FuelEU Maritime is described in the European Union (EU) regulation 2023/1805 and aims at reducing greenhouse gas (GHG) emissions from the maritime sector, which is a significant contributor to global emissions. It is part of the EU’s broader strategy to meet its climate goals, including the European Green Deal, which seeks to make Europe climate-neutral by 2050.
The main objective of FuelEU Maritime is to reduce the carbon intensity of maritime transport by promoting the use of cleaner, low-carbon fuels in the shipping industry. Here’s how it works:
Key Features of FuelEU Maritime:
- Carbon Intensity Limits: The regulation sets limits on the carbon intensity of the fuel used by ships, requiring ships to gradually reduce their emissions by using fuels with lower carbon content. The carbon intensity is measured in grams of CO₂ per kilowatt-hour (gCO₂/kWh) of energy used on board.
- Target Timeline: The regulation introduces gradual reductions in carbon intensity over time, with more stringent requirements in the coming decades. It encourages the adoption of alternative fuels such as biofuels, hydrogen, ammonia, and other low-carbon fuels.
- Monitoring and Reporting: Shipping companies are required to monitor, report, and verify the carbon intensity of their fuel usage. They need to demonstrate compliance with the regulation, with penalties for non-compliance.
- Incentivizing Green Technologies: The regulation encourages the development and deployment of innovative green technologies, including energy efficiency measures on ships and the use of renewable energy sources.
- Exemptions and Flexibility: Certain exemptions and flexibility mechanisms are included, especially for specific types of ships or operations. For example, the regulation may allow for longer transition periods for certain ship types or low-frequency routes.
FuelEU Maritime is one of the several measures under the EU Fit for 55 package, which aims to reduce the EU’s net GHG emissions by 55% by 2030 compared to 1990 levels.
In summary, FuelEU Maritime seeks to make maritime transport more sustainable and align the industry with the EU’s climate targets, driving the transition towards low-carbon fuel solutions.
Carbon Intensity Limits
The carbon intensity limits set by FuelEU Maritime are based on the amount of CO₂ emissions per unit of energy used on board ships, which is measured in grams of CO₂ per kilowatt-hour (gCO₂/kWh).
The key aspects of these carbon intensity limits are:
- Gradual Reduction in Carbon Intensity:
- The regulation introduces gradual reductions in the carbon intensity of maritime fuels over time.
- These limits apply to the annual average carbon intensity of the fuel mix used by ships.
- Phased Approach:
- 2025: The regulation starts by setting a baseline, and the carbon intensity of fuels must be reduced by 2% from 2025 onwards compared to the baseline year (2020).
- 2030: By this time, the carbon intensity must be reduced by 6% compared to the baseline.
- 2035: The reduction increases further to 13% by 2035.
- 2040: By 2040, the carbon intensity must be reduced by 26% compared to the 2020 baseline.
- 2045: The final target for 2045 requires a 37.5% reduction in the carbon intensity of fuel used in maritime transport compared to the baseline.
- 2050: The ultimate target is to reduce the carbon intensity by 75% by 2050.
- Encouraging Cleaner Fuels:
- The regulation incentivizes the use of low-carbon and zero-carbon fuels such as biofuels, synthetic fuels, ammonia, and hydrogen. Ships are encouraged to shift toward these cleaner alternatives.
- Renewable energy sources (e.g., wind, solar) and energy efficiency technologies on ships are also part of the overall strategy.
- Compliance Mechanisms:
- Ships need to monitor and report their fuel consumption and carbon intensity regularly.
- Non-compliance with these limits may result in penalties or sanctions for the shipping companies.
Reporting
Under the FuelEU Maritime regulation, there are specific reporting requirements for shipping companies to ensure compliance with the carbon intensity limits and track their progress toward reducing greenhouse gas (GHG) emissions. The reporting process is designed to monitor the carbon intensity of the fuels used by ships, helping to ensure that the sector is on track to meet the EU’s climate goals.
- Annual Reporting:
- Shipping companies are required to report annually on the carbon intensity of the fuels used by their vessels.
- This annual report should include the carbon intensity of the energy used by the ship (measured in grams of CO₂ per kilowatt-hour) and the type of fuels consumed.
- Carbon Intensity of Fuel:
- The report must detail the carbon intensity of the fuel mix used, which includes information on the percentage of low-carbon or zero-carbon fuels such as biofuels, ammonia, hydrogen, or synthetic fuels, as well as traditional fossil fuels.
- Shipping companies need to calculate the average carbon intensity of the fuel used by the ship over the course of a year, in line with the regulatory targets for that year.
- Verification:
- The fuel consumption and carbon intensity data must be verified by a third party (e.g., an independent auditor or a certified entity). This ensures the accuracy and reliability of the reported data.
- Verification is intended to provide confidence that the reported information is correct and that the ship is meeting the established carbon intensity reduction targets.
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