The maritime industry’s transition towards lower emissions continues to gather pace, with regulation playing an important role in encouraging the adoption of renewable and low-carbon fuels.
In this month’s Seastainability Corner, we take a closer look at FuelEU Maritime and the importance of proactive compliance management.
What is FuelEU Maritime?
FuelEU Maritime is a European Union regulation designed to reduce greenhouse gas emissions from the shipping sector and encourage the use of renewable and low-carbon fuels. It sets limits on the greenhouse gas intensity of the energy used onboard vessels calling at European ports, with those limits becoming progressively more stringent over time.
For shipowners and operators, navigating these requirements is not simply about meeting regulatory obligations. It also requires careful consideration of fuel selection, vessel operations and longer-term compliance planning.
The growing role of biofuels
Since the beginning of the year, the price difference between conventional marine fuels and biofuels has narrowed, making biofuels an increasingly attractive option for supporting FuelEU Maritime compliance.
Lower-carbon fuels can help operators reduce the greenhouse gas intensity of the energy used onboard their vessels. However, the most appropriate approach will depend on factors including a vessel’s operations, fuel requirements and wider compliance position.
“FuelEU Maritime is shifting the conversation from simply meeting regulatory requirements to thinking more strategically about compliance. With the right planning, lower-carbon fuels can help operators manage their exposure while also supporting their wider decarbonisation objectives.” Maria Angeles Lopez, Peninsula’s Decarbonisation Manager.
Planning for a changing operating environment
Current operational challenges are adding another layer of complexity. Geopolitical disruption can result in longer trading routes and higher fuel consumption, potentially increasing a vessel’s exposure to compliance costs.
FuelEU Maritime also allows operators to carry a compliance deficit into the following reporting period. Those choosing this option may face a 10% surcharge, reinforcing the importance of forward planning and effective compliance management.
As the regulatory landscape evolves, understanding the available fuel and compliance options will be essential. Peninsula’s experts work with customers to assess their requirements and explore solutions aligned with their operational and decarbonisation objectives.
Speak to one of our experts to learn more about FuelEU Maritime and the role lower-carbon fuels could play in your compliance strategy.