JOIN VESSEL POOL NOW TO MEET FUEL EU TARGETS

Sep 11, 2024 | Maritime business news

CarbonLeap, an independent organisation for managing monetised carbon reductions in global transportation, has recommended shipowners in compliance deficit to act now if they want to take advantage of cost efficiencies created by vessel pooling for meeting FuelEU Maritime compliance targets for commercial vessels over 5,000 gt.

According to CarbonLeap, leaving it until close to the compliance date in early 2026 to join a pool could leave owners facing significant financial penalties. Having pooling contracts in place before the FuelEU monitoring period starts in 2025 will enable owners to better plan for minimising compliance costs and passing on costs to their customers.

Once FuelEU Maritime regulations are applied to vessels sailing between, to or from EU ports in 2025, shipowners will face three options to ensure compliance: either pay a fine of €2,400 per tonne VLSFO energy equivalent, invest in higher cost alternative fuels and energy-efficient technologies, or take advantage of the FuelEU pooling mechanism to benefit from low-emissions by vessels that are overachieving on their compliance targets. Owners need to get their compliance strategy right or face serious penalties.

Retrofitting vessels to lower energy consumption and emissions is the best long-term approach to FuelEU Maritime compliance, while bunkering alternative fuels such as biofuels and LNG offers a short-term solution for the applicable compliance period. The pooling mechanism allows vessel owners with fleets with higher carbon emissions the opportunity to ensure compliance, by paying to combine their fleet performance with an owner of a lower emission, over-compliant vessel.

Pooling buys time; allowing for preparation and investment in order to meet the next compliance round and especially in preparation for the ramp up of the 6% well-to-wake GHG intensity target in 2030. For tramp shippers, who may face difficulties in bunkering compliant fuels at the ports they visit, pooling can be especially beneficial.

Guido Levie, co-founder CarbonLeap, said: “Failure to comply with FuelEU Maritime could create serious budget difficulties for the business of fleet owners, who could face hefty fines. This is why we are urging shipowners to find out about pooling opportunities to ensure they have their vessels covered and avoid any unexpected costs. We have strong partnerships with owners seeking pooling solutions and buyers looking to provide decarbonising solutions. But it is a process that takes time to set up thus an owner should act now. A FuelEU Maritime compliance pool allows fleet owners to quickly achieve compliance while allowing owners who have invested to make vessels compliant to unlock cashflow through the sale of their emissions compliance surplus. At CarbonLeap, our experience in environmental commodity trading, along with our network of FuelEU Maritime surplus partners with proven well-to-wake emissions performance, means that we can bring together the sellers, buyers, and verifiers to enable the sector to meet FuelEU Maritime compliance targets.”

CarbonLeap is working in collaboration with a leading verifier to develop a pool of highly compliant vessels and identify pool participants to share the cost of compliance with the vessel owners. Pool participants will benefit from the surplus compliance of the pool lead to ensure FuelEU Maritime compliance at the lowest cost.

Image: Guido Levie, co-founder CarbonLeap. (credit: CarbonLeap)

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