EU Takes Major Step Toward Decarbonizing Maritime Transport

The European Commission has announced an agreement between the European Parliament and the Council to enhance the maritime transport sector's contribution to the EU’s climate goals. The agreement aims to cut net greenhouse gas emissions by at least 55% by 2030 and achieve climate neutrality by 2050.

The new regulation, called FuelEU Maritime, seeks to reduce greenhouse gas emissions in the shipping industry by promoting the use of cleaner fuels and energy.

The regulation mandates a gradual reduction in the carbon intensity of fuels used by the shipping sector. Starting with a 2% reduction by 2025, this target will increase to as much as 80% by 2050.

This agreement complements a provisional deal reached in December 2022 to include shipping emissions in the EU Emissions Trading System (EU ETS). Together, these initiatives play a key role in the EU's strategy to cut maritime emissions.

In 2021, maritime transport accounted for 3% to 4% of the EU's total CO2 emissions. Despite a temporary slowdown due to the COVID-19 pandemic in 2020, shipping activity is expected to grow, driven by increasing demand for resources and container transport.

FuelEU Maritime will support the decarbonization of the maritime sector by enforcing annual limits on a ship’s greenhouse gas intensity. These limits will become more stringent over time, in line with technological advancements and the growing availability of renewable and low-carbon fuels. The targets will cover emissions of CO2, methane, and nitrous oxide throughout the fuel lifecycle.

Additionally, the regulation introduces a zero-emission requirement at ports, requiring passenger and container ships to use on-shore power supply (OPS) or alternative zero-emission technologies. This measure aims to reduce air pollution in ports, which are often located near densely populated areas.

FuelEU Maritime adopts a goal-based, technology-neutral approach, encouraging innovation and the development of new fuel technologies to meet future demands. This approach allows operators to choose the most suitable fuels based on specific ship or operational needs.