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Shipping Coalition Calls on EU for FuelEU Incentives and Consistency

EU's Fuel55 regulations
Coalition is calling for more incentives and clarity in the final language of the Fuel55 regulations

Published Jan 23, 2023 4:30 PM by The Maritime Executive

A broad coalition across the shipping industry issued a joint statement supporting the FuelEU maritime regulations while calling for more clarity and action as the different political and regulatory bodies in the European Union work to hammer out the final language on the regulation. The three key bodies of the EU are currently meeting to finalize language for the program.

“The FuelEU Maritime Regulation has the potential to set the necessary regulatory preconditions for the decarbonization of the shipping sector. The signatories call on the co-legislators to fully seize this opportunity to make the European industry a global leader in green shipping by raising the ambitions of the GHG intensity limits and promoting the uptake of green, sustainable e-fuels via a dedicated binding sub-quota. This should go hand in hand with matching targets on fuel suppliers and ports to ensure the availability of green e-fuels

After months of negotiation the EU last year reached a broad agreement on bringing the maritime industry into its cap and trade program for emissions. The controversial Fit for 55 package tackles hard-to-decarbonize industries, placing fees on shipping while trying to support the growth of green, e-fuels.

The 47 signatories, representing the entire value chain of green fuels including suppliers, users, and maritime technology enablers, expressed their support for the ongoing FuelEU Maritime trilogue to set a proactive, ambitious regulation. They are calling for five elements to be incorporated into the new initiative.

The group is calling for the immediate introduction of stronger GHG intensity limits and more effort to promote the use of e-fuels. While noting the actions so far by the EU, the group is calling for a multiple in the form of the two percent sub-quota for renewable fuels of non-biological origin. They are also saying that the sub-quota much be applied to all shipping companies regardless of size.

They argue that the sub-quota is “indispensable to give e-fuel producers and shipping companies investment and planning security to achieve a swift market ramp-up of e-fuels.” They are saying that the regulations must maintain at least the two percent figure to drive production of the fuel and enable economical pricing of the fuels to make it possible to increase their adoption. Some members of the coalition, such as Hydrogen Europe advocated for a higher sub-quota.

The regulation should also reward investments in net-zero emission vessels. They believe this could be used to boost investment in small ships under 5,000 gt and offshore service vessels that might be left behind. Similarly, they call for the penalties for non-compliance accessed against companies also be dedicated to funding decarbonization efforts for the shipping sector.

Participants in this latest lobbying effort include Danish Shipping, Sea Europe for the shipyards, the eFuel Alliance, and multiple groups involved with hydrogen. Corporate participants range from DFS, Amon Maritime, Viridis Bulk Carriers, and Yara International as well Copenhagen Infrastructure Partners, and Siemens Energy among many others.