FuelEU - reduce greenhouse gas emissions from the maritime transport sector

The implementation of this regulation (Regulation (EU) 2023/1805 of the European Parliament and of the Council) aims to reduce greenhouse gas emissions from the maritime transport sector by promoting the use of renewable and low-carbon fuels and sustainable technologies on board the ships. Shipping companies must report on the following GHGs: carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂0).

The FuelEU regulation applies to all ships of above 5 000 gross tonnage, regardless of flag, engaged in commercial passenger or cargo transport and calling at EU/EEA ports. The GHG intensity requirement applies to 100% of the energy used during voyages and port calls within the European Union or the European Economic Area and to 50% of the energy used during voyages to or from the European Union/European Economic Area.

The FuelEU regulation establishes a monitoring, reporting and verification system to ensure compliance with the provisions of the regulation. Ships falling within the scope of this Regulation must monitor the ship's fuel consumption based on a verified monitoring plan and report the required data in the FuelEU report. The FuelEU report is submitted to an accredited verifier by the shipping company, who assesses the quality, completeness and accuracy of the report and calculates the annual average GHG emission intensity of the energy used on board the ship. GHG emissions are assessed on a well-to-wake basis, taking into account the impacts of energy production, transport, distribution and use on board. Verifiers must also determine the ship’s compliance balance with respect to the limit, including any compliance surplus or deficit, as well as determine whether the ship has complied with the obligation to use on-shore power supply (the latter applies from 2030). In the event of a change of shipping company, the company transferring the ship shall submit a partial FuelEU report to the verifier as soon as possible and have it verified no later than one month after the date of transfer of the ship.

Shipping companies are allowed to use flexibility mechanisms (banking and borrowing of compliance surplus between reporting periods; pooling of compliance). The use of flexibility mechanisms must be approved by the verifier. 

If the annual average GHG emission intensity of the energy used on board a ship does not comply with the limits, a dissuasive sanction shall be applied. A FuelEU sanction should also be imposed for each non-compliant port call (from 2030). After the FuelEU sanction has been paid, the competent authority shall issue a FuelEU document of compliance to the ship. 

All activities related to the monitoring plan and the FuelEU report shall be carried out in THETIS-MRV, where the performance of each ship are recorded and all reports of actions taken by verifiers and the competent authority, the use of flexibility mechanisms, proof of payment of sanctions and the ships' FuelEU documents of compliance are added.

• 31 August 2024 – companies shall submit to the verifiers a monitoring plan for each of their ships indicating the method chosen from among methods set out in Annex I for monitoring and reporting the amount, type and emission factor of energy used on board by ships and other relevant information. For ships falling under the scope of this Regulation for the first time after 31 August 2024, companies shall submit a monitoring plan to the verifier without undue delay and no later than two months after each ship’s first call at a port under the jurisdiction of a Member State.
• 31 January of the verification period – companies shall submit the FuelEU report to the verifier. In the event of the transfer of a ship from one company to another, a partial FuelEU report shall also be submitted.
• 31 March of the verification period – the verifier shall notify to the company the calculated information and record in the FuelEU database the FuelEU report that complies with this Regulation, the verification report and the calculated information.
• 30 April of the verification period – the company shall record the advance compliance surplus, following approval by its verifier, in the FuelEU database. The selected verifier shall also record in the FuelEU database the definitive composition of the pool and allocation of the total pool compliance balance to each individual ship.
• 30 June of the verification period – issuance of the FuelEU document of compliance, payment of the sanction amounts if applicable.
• From 1 January 2030, a ship moored at the quayside in a port of call which is covered by Article 9 of Regulation (EU) 2023/1804 and which is under the jurisdiction of a Member State shall connect to OPS and use it for all its electrical power demand at berth.
• From 1 January 2035, a ship moored at the quayside in a port of call which is not covered by Article 9 of Regulation (EU) 2023/1804, which is under the jurisdiction of a Member State and where the quay is equipped with available OPS shall connect to that OPS and use it for all its electrical power demand at berth.