According to a new DNV white paper outlining FuelEU Maritime requirements and compliance strategies for shipowners, compliance with the upcoming regulations will be expensive but applying certain strategies can significantly reduce the cost.
Effective from 1 January 2025, the rules mandate stringent GHG emission intensity requirements for ships over 5,000gt transporting cargo or passengers for commercial purposes in the EU/EEA. GHG emissions are calculated from a well-to-wake perspective. In addition to emissions from onboard combustion, this calculation includes emissions related to the extraction, cultivation, production, and transport of the fuel. The regulation includes provisions for crediting ships using wind-assisted propulsion.
The DNV paper provides shipowners with insights to reduce compliance expenses and avoid major penalties. It contains a comprehensive overview of the regulation, including a case study which highlights a range of different compliance strategies. This shows how the adoption of the most cost-effective strategy can result in savings of up to 16% or US$ 21m over a vessel’s lifetime compared to using Bio-MGO as a compliance option.
Knut Ørbeck-Nilssen, DNV Maritime CEO, said: “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. Just paying the penalty could prove a more costly option. 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.”
The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It recommends considering pooling as a mechanism for sharing and optimising costs. This is underpinned by a call to begin preparations immediately. The report highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.
A key point emphasised in the report is that IMO is set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the second half of 2025 and come into force around mid-2027.
