EU Strikes Deal on World’s 1st Green Shipping Fuel Mandate

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(WMN) The European Parliament and the Council have reached a deal on the increase of maritime transport’s contribution to reaching the EU-wide target of achieving climate neutrality in 2050.
Namely, early this morning co-legislators agreed on FuelEU Maritime – a new EU regulation ensuring that the greenhouse gas intensity of fuels used by the shipping sector will gradually decrease over time, by 2% in 2025 to as much as 80% by 2050.
The deal sets up a fuel standard for ships to steer the EU maritime sector towards the uptake of renewable and low-carbon fuels and decarbonisation. Under the agreement, big ships will be required to gradually reduce GHG emissions.
Namely, ships will have to gradually cut the amount of GHG in the energy they use (below 2020 level of 91.16 grams of CO2 per MJ) by 2% as of 2025, 6% as of 2030, 14,5% as of 2035, 31% as of 2040, 62% as of 2045 and 80% as of 2050.
This would apply to ships above a gross tonnage of 5000, which are in principle responsible for 90% of CO2 emissions, and to all energy used on board in or between EU ports, as well as to 50% of energy used on voyages where the departure or arrival port is outside of the EU or in EU outermost regions.
The Commission will review the rules by 2028 to decide whether to extend emission-cutting requirements to smaller ships or to increase the share of the energy used by ships coming from non-EU countries.
The deal gives more credits, as an incentive, in the form of offsetting emissions to those ship owners who use renewable fuels of non-biological origin (RFNBO) from 2025 to 2034.
The deal also set a 2% renewable fuels usage target as of 2034 if the Commission reports that in 2030 RFNBO amount to less than 1% in fuel mix.
The new rules also introduce an additional zero-emission requirement at berth, mandating the use of on-shore power supply (OPS) or alternative zero-emission technologies in ports.
In line with that, containerships and passenger ships will be obliged to use on-shore power supply for all electricity needs while moored at the quayside in major EU ports as of 2030. It will also apply to the rest of EU ports as of 2035, if these ports have an onshore power supply.
This should significantly reduce air pollution in ports. Certain exemptions, such as staying at port for less than two hours, using own zero-emission technology or making a port call due to unforeseen circumstances or emergencies, will apply.
The measure complements the provisional agreement reached on 18 December 2022 to include shipping emissions in the EU Emissions Trading System (EU ETS).
*Culled from World Maritime News
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