The FuelEU Maritime Initiative Becomes Law

The Council of the EU has adopted a new law to decarbonise the European maritime sector. This new law, the FuelEU maritime initiative, comes as a part of the Fit for 55 package which aims to reduce EU net greenhouse gas emissions by at least 55% (compared to 1990 levels) by 2030. By increasing the demand and consumption of renewable low-carbon fuels and reducing greenhouse gas emissions in the shipping sector, it is hoped that the FuelEU maritime initiative will contribute to the ultimate goal of the Fit for 55 package of net neutrality by 2050.?

In the coming 30 years, the FuelEU maritime initiative will focus on implementing several measures that will ensure the gradual reduction in use of high intensity greenhouse gas fuels, from 2% by 2025 and 80% by 2050. Additionally, the initiative will set up a special incentive regime to support the uptake of renewable fuels of non biological origin (RFNBO) due to its high decarbonisation potential. Some other initiatives that will be implemented with this new law include an obligation (after 2030) for passenger ships and containers to use on-shore power supply for all electricity needs while moored, alongside a voluntary pooling mechanism which will allow companies to pool their compliance balance over multiple ships to meet the new greenhouse gas intensity limits on average. Finally, it will be the responsibility of the EU commission to monitor the implementation of the regulation.