Shipping is navigating its way to net-zero with the implementation of measures and regulations to address current and future greenhouse gas (GHG) emissions. Following last year’s introduction of regulation updates, including Carbon Intensity Indicator (CII) and the European Union Emissions Trading Scheme (EU ETS), the maritime industry is again close to another significant regulatory change.
FuelEU Maritime is the latest initiative which has been implemented by the EU to ensure the industry remains on course for a widespread reduction in GHG emissions. The new regulatory framework will begin from January 2025 and will also encourage the use of onshore power supplies and incentivise the adoption of renewable fuels.
As ship owners and operators prepare to meet these new standards, understanding the latest regulations and compliance is essential. In this post, we will explore what is FuelEU Maritime, what are the implications for the maritime industry, and how digital tools can effectively pave the way to support companies in adhering to these regulations, while also lowering emissions and reducing costs.
What is FuelEU Maritime?
FuelEU Maritime is a regulatory framework introduced by the European Union aimed at reducing greenhouse gas emissions from the maritime industry. It forms a crucial part of the EU's broader climate strategy under the Fit for 55 package, targeting a 55% reduction in emissions by 2030 compared to previous levels. The regulation focuses on increasing the adoption of sustainable fuels in maritime and enhancing energy efficiency.
FuelEU expands reporting requirements beyond existing regulations like the EU Emissions Trading System (EU ETS), the Carbon Intensity Indicator (CII), and the Monitoring, Reporting, and Verification (MRV) system. It enforces strict compliance protocols for ship owners and operators, ensuring that all vessels operating within EU waters adhere to these new standards.
How will FuelEU maritime reduce emissions?
The main objective of the FuelEU maritime initiative is to increase the use of renewable and low-carbon fuels and reduce the greenhouse gas emissions from the shipping industry.
Like the IMO Carbon Intensity Indicator (CII) and the European Union Emissions Trading Scheme (EU ETS), FuelEU Maritime aims to reduce shipping emissions within the EU, focusing on the GHG intensity of the energy consumption of ships and the proposed revision of the energy efficiency.
The FuelEU Maritime regulation sets forth several key requirements:
Greenhouse gas (GHG): Vessels will have to reduce their greenhouse gas intensity progressively, beginning with a 2% reduction in 2025, scaling up to as much as 80% by 2050.
Energy efficiency (EE): Enhancements in energy efficiency are required to align with existing frameworks like the Energy Efficiency Design Index (EEDI).
Sustainable fuels: Adopting alternative fuels such as hydrogen, ammonia, and biofuels.
Compliance and reporting: Detailed reporting on fuel consumption, emissions, and energy efficiency measures.
What is next?
Beginning from 2025, all vessels above 5000GT carrying passengers and cargo operating within the EU or the European Economic Area (EEA) will be required to use fuels with greenhouse gas (GHG) intensities (measured in gCO₂ₑ/MJ) below a specified threshold.
By August 31, 2024, shipowners and managers were required to prepare and submit monitoring plans for approval by verifiers.
Beginning January 1, 2025, they must collect and report data according to these monitoring plans for:
100% of the energy used for voyages between EU ports and while at berth, measured on a well-to-wake basis.
50% of the energy used for voyages between an EU (or EEA) port and a port outside the EU.
Digital maritime technology and FuelEU maritime
In recent years, digital technology has begun to change the way the industry operates, with digitalisation providing enhancements to efficiency and sustainability, improving safety, and increasing competitiveness.
This technology is fast becoming an indispensable tool in navigating the complexities of FuelEU compliance. Advanced data management solutions can consolidate information from ships, shoreside operations, and external sources, providing a holistic view of fleet performance. These tools enable real-time monitoring and reporting of emissions data, ensuring adherence to FuelEU regulations alongside other frameworks like MRV, CII, and EU ETS.
A strategic approach | 90POE
Navigating the complex world of maritime regulations is a significant challenge for ship owners and operators. Keeping up to date with international and regional variations, and interpreting them accurately, can be a time-consuming and potentially error-prone process.
Utilising digital technology like 90POE’s OpenOcean STUDIO provides a strategic solution to ensure compliance, together with the opportunity to monitor, optimise and improve overall emissions management performance.
The innovative platform consolidates data from vessel, shoreside operations, and third-party applications, offering a holistic view of fleet operations and a single source of truth. Advanced performance modules allow for the simplified and accurate monitoring and reporting of emissions to verification providers, across the whole fleet.
By utilising OpenOcean STUDIO, ship owners and operators can ensure that their vessels meet the requirements set by FuelEU, as well as the wider regulatory compliance requirements of MRV, CII and EU ETS. The platform allows users to track and analyse emissions data, calculate, review and report on past, present and future environmental footprint, reduce costs and enhance operational efficiency by targeting your corrective actions.
Conclusion
FuelEU Maritime represents a pivotal moment for the shipping industry. By mandating the use of sustainable fuels and enhancing energy efficiency, the EU is driving a significant shift towards a cleaner, more sustainable maritime sector. While the challenges are substantial, the opportunities for innovation and growth are equally immense.
Digital solutions, such as 90POE's OpenOcean STUDIO, are essential tools for navigating this complex regulatory landscape. By harnessing the power of data and advanced analytics, ship owners and operators can not only ensure compliance but also optimise operations, reduce costs, and contribute meaningfully to environmental sustainability.
As the industry transitions to a low-carbon future, collaboration between regulators, industry stakeholders, and technology providers will be crucial. By working together, we can overcome challenges, accelerate the adoption of sustainable practices, and create a thriving maritime industry that protects our planet and the bottom line.
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