Impacts of FuelEU’s maritime regulation

A new analysis of Germany shows that the container sector faces the brunt of sanctions arising from the upcoming FuelEU maritime regulationthe sector that probably accounts for almost a third of all payments.

According to Splash, the financial impact of FuelEU Maritime, which will come into force early next yearis focusing the attention of shipping companies, which are facing Possible sanctions for failure to meet greenhouse gas (GHG) intensity reduction targetsVessels will be fined €2,400 per tonne of VLSFO equivalent for failing to meet the initial 2% reduction target relative to the 2020 baseline. The GHG intensity requirement applies to 100% of the energy used in voyages and port calls within the EU/EEA and 50% of travel within and outside the bloc.

OceanScore has identified the segments that will be most affected. OceanScore predicts that the Maritime transport as a whole will accumulate a total of 1.345 billion euros in FuelEU sanctions in 2025 through analysis of the 13,000 vessels over 5,000 gt trading within and towards the EU/EEA that are subject to the regulation.

As with the EU Emissions Trading Scheme (EU ETS)it is the container segment that will be forced to pay the most, representing 29% of gross penalties according to OceanScore, followed by cargo ships with 14% and oil tankers and bulk carriers with 13% each.

«It is essential that the Shipping companies determine a baseline for expected FuelEU costs to ensure proper planning and budgeting processes to compare different mitigation options, as well as to decide what to do with outstanding compliance balances,” said OceanScore managing director, Albrecht Grell.

He adds that “this will require, to a greater extent than the EU ETS, a corporate strategy to determine how to reduce the compliance/deficit balancehow to market a surplus and deal with persistent deficits.”

Related: Technology to predict polluting emissions in port handling

 
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