Brussels, July 25th – According to sources, in a significant step towards combating climate change and reducing greenhouse gas emissions, the European Council has formally adopted a new regulation, the ‘FuelEU maritime’ initiative. The legislation, which forms a crucial part of the EU’s ambitious ‘Fit for 55’ package, aims to drive the maritime sector towards greater sustainability by promoting the use of renewable and low-carbon fuels.
The primary objectives of the FuelEU maritime initiative are to increase the demand for eco-friendly fuels and substantially decrease the shipping sector’s carbon footprint. Additionally, the regulation aims to ensure smooth maritime traffic operations while safeguarding fair competition in the internal market.
Key Provisions of the New Regulation
The freshly adopted regulation features several essential provisions, designed to progressively reduce the greenhouse gas intensity of fuels used in shipping. It sets a clear trajectory for the maritime sector, with a target to decrease emissions by 2% in 2025 and an ambitious goal of up to 80% by 2050.
To further encourage the adoption of renewable fuels of non-biological origin (RFNBO) with high decarbonization potential, the legislation introduces a special incentive regime. This move is expected to stimulate innovation and accelerate the shift towards greener alternatives.
Notably, the regulation also excludes fossil fuels from the certification process, signifying a clear commitment to phasing out traditional carbon-intensive options in favor of sustainable alternatives.
Taking a stand against air pollution in EU ports, the new law mandates passenger ships and containers to use on-shore power supply for all electricity needs while moored at the quayside by 2030. This measure is particularly significant, as ports are often located close to densely populated areas, and the switch to on-shore power will help mitigate emissions and improve air quality.
To facilitate compliance, the regulation allows for a voluntary pooling mechanism, wherein ships can join forces to meet greenhouse gas intensity limits on average. This approach encourages cooperation and ensures that overall emissions targets are achieved.
While pushing for wide-scale decarbonization, the regulation acknowledges the unique circumstances of outermost regions, small islands, and areas heavily dependent on connectivity, providing them with limited and time-bound exceptions.
Transparency and accountability are vital in this endeavor, and the new law establishes an enhanced mechanism to allocate revenues generated from the implementation of the FuelEU maritime initiative. These funds, termed ‘FuelEU penalties,’ will be directed towards projects supporting the decarbonization of the maritime sector.
Monitoring and Implementation
The European Commission will closely monitor the implementation of the new regulation through a robust reporting and review process, ensuring that progress aligns with the ambitious climate targets set by the EU.
Next Steps and Background Information
Following the Council’s formal adoption, the regulation is set to be published in the EU’s official journal after the summer and will take effect twenty days after publication. The majority of the provisions will apply from 1 January 2025, except for articles 8 and 9, which will come into force from 31 August 2024.
The FuelEU maritime initiative is an integral part of the EU’s ‘Fit for 55’ package, introduced by the European Commission on 14 July 2021. The package seeks to slash the EU’s net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, as a crucial step towards achieving climate neutrality by 2050.
The adoption of the FuelEU maritime regulation marks a pivotal moment in the EU’s efforts to combat climate change and steer its shipping sector towards a greener and more sustainable future. With this ambitious legislation, the EU reaffirms its commitment to global climate leadership and sets an example for other regions to follow suit in the fight against the climate crisis.
- Regulation on the use of renewable and low-carbon fuels in maritime transport (FuelEU Maritime initiative), 25 July 2023
- FuelEU Maritime initiative, text of the provisional agreement, 23 March 2023
- Council General Approach, 2 June 2022
- Fit for 55 (background information)
- European Green Deal and Fit for 55 (timeline)
- European Climate Law, 30 June 2021
Source: European Council
