Change is on the horizon. On 1 January 2025, FuelEU Maritime arrives, and with it a whole new approach to measuring, and reducing, the fleet emissions. To ensure compliance, flexibility and strategic business advantage they have to act now.
But how? What are the foundations for success in a new regulatory reality? How can they turn complexity into smooth sailing, and profitable decision making? NAVTOR’s Jacob Clausen has some easy answers.
1. Ensure they Are Collecting the Right Data
The framework measures the GHG intensity of energy used by ships trading within the EU
Every regulation demands data, but none quite like FuelEU Maritime. The framework measures the GHG intensity of energy used by ships trading within the EU and the European Economic Area (EEA) across the full “well-to-wake” spectrum.
This means you need systems to accurately track fuel consumption and emissions data across the entire lifecycle of the fuel (not just on a “tank-to-wake” basis, as with EU MRV). This requires sophisticated data collection way beyond basic manual inputs. Forget Excel; intelligent data capture is the way forward.
2. Track Fuel Usage by Source to Compute GHG Intensity
Those intelligent systems should be integrated not just across the fleet, but also the fuel suppliers. To ensure compliance they must have a deep understanding of their fuel sources, tracking all consumed energy step-by-step, all the way from initial extraction right through to onboard combustion. A joined-up approach is essential, for both compliance and optimal business value (nobody wants to pay unnecessary penalties).
3. Understand the Fleet's Current GHG Intensity
With a 2% reduction target for 2025, operators should aim to cap GHG intensity at 89.34 gCO2e/MJ by that year
They can only plan the voyage when they know the point of departure. So understanding where the fleet currently stands in relation to the 91.16 gCO2e/MJ regulation baseline is absolutely essential. By calculating the fleet's GHG intensity now, they can better plan for the necessary reductions.
With a 2% reduction target for 2025, operators should aim to cap GHG intensity at 89.34 gCO2e/MJ by that year. And remember the scale continues sliding, with a 6% reduction by 2030, tapering down to an 80% cut by 2050.
4. Evaluate the Compliance Options
Each fleet and operation is unique, meaning that the most cost-effective compliance solutions vary. That means you need to evaluate options based on the specific situation:
- Fuel Mix: Transitioning to low-carbon fuels, such as biofuels or LNG, can reduce GHG intensity.
- Shore Power: Using shore power when docked can minimize onboard fuel consumption and emissions.
- Wind-Assisted Propulsion: Installing wind-assist technologies, such as suction or rotor sails, can cut fuel use, contributing to reduced GHG emissions.
- Banking, Pooling, or Borrowing: These mechanisms allow for strategic management of emissions allowances. Operators with surplus allowances can bank or pool them for future use, while those facing deficits can borrow allowances to avoid penalties.
- Penalty Consideration: When alternative fuels or technology investments are too costly, evaluating the cost of non-compliance penalties may provide a stopgap measure.
5. Plan Ahead now to Manage Cost Exposure
Legally, compliance with FuelEU Maritime comes into force on 30 April 2026, when 2025’s figures are digested
Legally, compliance with FuelEU Maritime comes into force on 30 April 2026, when 2025’s figures are digested. This can create the illusion that there’s plenty of time. There’s not. Delaying decisions to the last minute will leave operators vulnerable to higher costs and fewer options, while planning ahead creates insight and opportunity.
Those with surplus emissions reductions can consider banking or pooling their allowances, while those anticipating compliance challenges must plan ahead for alternatives such as biofuels, shore power, or borrowing allowances. A proactive strategy not only reduces risk, but positions the fleet for long-term sustainability – both commercially and environmentally.
Advent of FuelEU Maritime
There is a great deal of confusion, and some consternation, with regards to the advent of FuelEU Maritime. However, with the right solutions, partners and planning they can simplify this complex regulation and sail compliantly into a more sustainable, and profitable, future.
But the time to act is now. Get in touch with NAVTOR to find out more about safe, secure and cost-effective compliance.