Dirty Fuels in Shipping ‘Beginning of the End’ FuelEU Maritime

Shipping, transport, and environmental groups have welcomed the world’s first regulation requiring vessels to use sustainable fuel.

Following an agreement between the European Parliament and Council, the FuelEU Maritime regulation will mandate the use of green fuels for shipping starting in 2025, with a review of the regulation set for 2028.

“FuelEU Maritime will help decarbonize the maritime transport sector by setting annual limits on the greenhouse gas (GHG) intensity of the energy used by ships,” said the European Commission.

Additionally, the regulation will require containerships to use shore power, or a zero-emission alternative, while docked to protect local communities from pollution.

The regulation outlines GHG reduction targets starting with a 2% decrease in 2025, followed by a 6% reduction by 2030, and scaling up to 14.5% in 2035, 31% in 2040, 62% in 2045, and 80% by 2050.

FuelEU is the second part of the EU's strategy to decarbonize maritime transport, following the inclusion of shipping in its Emissions Trading System (ETS) last year.

Jim Corbett, environmental director for Europe at the World Shipping Council (WSC), said: “I’m pleased that the regulation considers the full lifecycle GHG performance of fuels. The WSC worked with the stakeholders to develop a technology-neutral regulation that will drive the supply of alternative fuels and ensure genuine reductions in GHG emissions.”

Freight forwarder representative Nicolette van der Jagt, director general at Clecat, told The Loadstar: “This is a crucial step toward decarbonizing shipping through the increased adoption of renewable and low-carbon fuels. It ensures that the shipping sector will meet climate targets and gradually phase out the reliance on highly polluting heavy fuel oil.”

She added: “The agreement now provides clear direction for the maritime sector and fuel suppliers on the types of fuels that can be used.”

Corbett echoed Clecat's sentiments, stating: “FuelEU Maritime scales up demand for sustainable fuels in Europe. [Yesterday’s] agreement gives shipping companies the clarity they need to move beyond first-mover innovation and leadership, and to make further investments supporting the transition to zero GHG fuels.”

He noted that liner shipping has already made strides in meeting its climate goals and is pushing for greater demand for low- and zero-carbon fuels.

In a rare alignment of shipping and environmental groups, Transport and Environment's (T&E) sustainable shipping officer, Delphine Gozillon, said: “This decision marks the beginning of the end for dirty fuels in shipping. The EU is leading the way with the most ambitious green shipping laws ever adopted. This achievement should inspire other countries to follow suit.”

However, T&E warned that there are still limited viable fuel options for deep-sea shipping and that "loopholes" in the regulation could allow biofuels and low-carbon fuels to enter through a "backdoor." The environmental group called on the EU to address these issues when revising the law in 2028.

Shippers have also raised concerns that carbon pricing by shipping lines could be introduced by the International Maritime Organization before the lines themselves are subject to such charges. This legislation may help ease those concerns.

Not everyone in the maritime sector is enthusiastic. DNV Maritime CEO Knut Ørbeck-Nilssen, speaking at the CMA conference in the US, noted that "new fuels and infrastructure will be delayed and scarce." While he emphasized the importance of maintaining decarbonization goals, he advocated for more immediate solutions such as liquefied natural gas (LNG), stating, "We must focus on what can be done now, rather than waiting for a future breakthrough fuel."