FuelEU Maritime Regulations: Navigating the Future of Shipping in European Waters
Key Ideas
- From 2025, shipowners must collect data on energy usage; compliance is crucial to avoid penalties.
- FuelEU introduces a framework for reducing greenhouse gas intensity by 80% against a 2020 benchmark by 2050.
- Renewable Fuels of a Non-Biological Origin (RFNBOs) like green hydrogen are encouraged at the top of the fuel hierarchy.
- FuelEU incentivizes compliance by creating a market for surplus compliance, turning sustainability into a revenue driver.
Starting January 1st, 2025, FuelEU Maritime regulations mandate shipowners to collect data on energy usage onboard each vessel operating in European waters. The regulations aim to reduce the greenhouse gas intensity of fuels by 80% against a 2020 benchmark by 2050, with penalties for non-compliance. Data collection aligns with the FuelEU Monitoring Plan, with submissions due by January 31, 2026. The framework places Renewable Fuels of a Non-Biological Origin (RFNBOs), such as those produced by combining green hydrogen with other elements, at the top of the fuel hierarchy, while fossil fuels face penalties. Biofuels and RFNBOs are expected to increase their share in the transport sector by 2030 and 2035. To ensure renewable hydrogen, criteria like additionality and temporal/geographic correlation are put in place. Producers can sign long-term agreements with existing renewable installations until 2028 and rely on third-party certification schemes. Compliance with FuelEU can lead to revenue generation by selling surplus compliance in a new market. This shift towards a lower-carbon future makes FuelEU not just a regulation but a market intervention for a profitable and sustainable future.