DNV white paper provides FuelEU guidance
With less than a month to go until FuelEU Maritime enters force for ships of more than 5,000gt trading in the waters of the European Economic Area or to/from the region, shipowners must adopt compliance strategies to avoid major penalties, DNV has declared in a white paper.
FuelEU is not only significantly more complex than the EU Emissions Trading System (ETS) which entered force last January, it is also based on emissions calculated on a ‘well-to-wake’ rather than a ‘tank-to-wake’ basis. This means that certain fuels which work reasonably well under the ETS regulation perform less well under FuelEU, and vice versa. The regulation also credits the managers of ships with wind-assisted propulsion and which can hook up to shore power in port.
The classification society’s Maritime CEO, Knut Ørbeck-Nilssen, warned that shipowners who don’t have a sound strategy will face higher costs by having to pay FuelEU penalties. “It is essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance at reduced costs.
“All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain,” he added.
The report notes that the International Maritime Organization is preparing to introduce a similar regulation, with a net-zero framework likely to be adopted later next year ready for entry into force in mid-2027.
