Summary
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information—why you seek it is not our concern.
Details
- European Union
Deep dive
Background
The FuelEU Maritime Regulation, formally adopted as Regulation (EU) 2023/1805, is a key aspect of the European Union’s Fit for 55 legislative package, which aims to reduce greenhouse gas (GHG) emissions by at least 55% by 2030 and achieve climate neutrality by 2050. Adopted in September 2023, the regulation targets the maritime sector, which is responsible for roughly 3% of global emissions, by promoting renewable and low-carbon fuels, as well as clean energy technologies like onshore power supply (OPS). The European Commission, supported by the European Maritime Safety Agency (EMSA), oversees implementation, building on previous frameworks such as the EU Emissions Trading System (ETS) (extended to shipping in 2024) and the Monitoring, Reporting, and Verification (MRV) Regulation. FuelEU complements these policies by setting well-to-wake GHG intensity limits for ship fuels, ensuring alignment with the European Climate Law and the Renewable Energy Directive.
Reporting Requirements
As detailed in the regulations, shipping companies are required to monitor and report detailed data on their vessels' energy usage and associated GHG emissions, including carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O). This encompasses fuel consumption at sea and during berthing, energy received through onshore power supply (OPS), and well-to-wake emission factors for each fuel type. Companies must submit a FuelEU Monitoring Plan by August 31, 2024, outlining their data collection methods. Starting from January 1, 2025, data recording begins, with the first FuelEU Report due to verifiers by January 31, 2026. Verified reports are then submitted to the FuelEU database, and a FuelEU Document of Compliance is issued by June 30 each year, which ships must carry when entering EU ports.
Affected Entities
The regulation applies to commercial ships over 5,000 gross tonnage (GT) calling at EU ports, regardless of flag state. This includes:
Container ships, passenger vessels, and cargo carriers, which must also comply with zero-emission berthing rules (OPS or alternative technologies) by 2030–2035.
International Safety Management (ISM) Code-compliant companies (typically shipowners or operators), responsible for submitting reports and ensuring accuracy.
Exemptions include warships, fishing vessels, and non-mechanically propelled ships, while Norway and Iceland face delayed implementation due to EEA Agreement incorporation delays.
Penalties for Noncompliance
Noncompliance with FuelEU's reporting requirements can result in significant penalties. If a ship exceeds its GHG intensity limit, the company faces a penalty calculated based on the compliance deficit, with fines around €2,400 per tonne of very low sulphur fuel oil (VLSFO) energy equivalent. Failure to meet OPS requirements incurs a penalty of €1.50 per kWh of established electrical power demand at berth. Persistent noncompliance, such as failing to present a valid Document of Compliance for two consecutive periods, can lead to expulsion orders, barring the ship from entering any EU port until obligations are met.
