2025 2030 2035 2040 2045 2050
Lloyds Register: with the FuelEU requirements
Timeline for compliance
FuelEU is a draft Regulation, part of the EU’s ‘Fit for 55’ package, which aims to incentivise the use of renewable and low-carbon fuels on ships to reduce greenhouse gas (GHG) emissions (CO2, CH4 and N2O). The final draft text of the Regulation is not yet available, but Lloyd’s Register has issued a Class News paper to provide essential information about it.
The Regulation is expected to apply from 1 January 2025 to ships over 5000 GT which use EEA (EU plus Norway and Iceland) ports. To incentivise the use of renewable and low carbon fuels, FuelEU will impose limits on the greenhouse gas intensity of fuels used onboard, and require certain ship types to have zero-emissions at berth from 2030, with stringent financial penalties for non-compliance.
On 22nd of March 2023, EU agreed to the world’s first green shipping fuels law in favor of at least 2% mandate for green shipping fuels by 2025, compared to the latest agreement of a mandate by 2030. Negotiators agreed new targets for shipowners to reduce the greenhouse gas intensity of the energy they use onboard by 2% from 2025 and 6% as of 2030. Ships will be required to increasingly switch to sustainable fuels and at least 2% of the bloc’s shipping fuels will need to come from e-fuels derived from renewable electricity by 2034 at the latest.
Key requirements of FuelEU
Reduction of GHG intensity: The yearly average GHG intensity of energy used onboard a ship will need to be determined in accordance with the Regulation. The value is not to exceed the 2020 fleet average GHG intensity of energy used onboard ships. Every 5 years from 2025 to 2050 this reference value will be reduced as follows:
• By 2% from 2025
• By 14.5% from 2035 • By 31% from 2040 • By 62% from 2045
• By 6% from 2030 • By 80% from 2050
Do you know? The GHG intensity is a measure of the CO2 equivalent emissions per quantum of energy used on board. This will be measured based on reported fuel consumption, from EU MRV, and the emission factors of the fuels used on a well-to-wake basis.
As stated by ESPO, the agreement provides the shipping sector with a framework to accelerate their green transition through reduced emissions during navigation and at berth. The ambitious requirements for ships to reduce emissions starting in 2025 will help drive the uptake of alternative fuels in shipping, as well as help ensure the use of shore side electricity (SSE).
The Report • June 2023 • Issue 104 | 83
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