EU Institutions Reach Provisional Deal on FuelEU Maritime Regulation

The European Commission first proposed the regulation in June 2021. File Image / Pixabay

The European Council and European Parliament have reached a provisional deal on amendments to the proposed FuelEU Maritime regulation that will mandate the gradual reduction of marine fuels' carbon intensity.

The European Commission first proposed the regulation in June 2021 as part of the Fit for 55 package of decarbonisation measures.

The regulation mandates a gradual ratcheting-up of carbon intensity reduction targets for marine energy for ships over 5,000 GT in size from 2025.

Agreement was reached on amendments to the Commission's proposal following a meeting late on Wednesday.

"Today we managed to agree another part of the Fit for 55 package.," Andreas Carlson, Swedish minister of infrastructure and housing, said in a statement on the Council's website on Thursday.

"The agreement will ensure a level playing field and make sure that fuel suppliers, ships and maritime operators will have sufficient time to adapt for the new conditions so the maritime sector will deliver on the climate targets."

The provisional agreement makes the following amendments, according to the statement:

• Introducing time limited exceptions for the specific treatment of the outermost regions, small islands, and areas economically highly dependent on their connectivity
• Introducing reduction factors for ice classed ships, as well as ships navigating in ice
• Increasing the reduction targets for the greenhouse gas intensity of energy used on board by ships as from 1 January, 2035 and introducing measures to encourage the use of the so-called renewable fuels of non biological origin (RFNBO)
• Amending the requirements for on-shore power supply (OPS) and provisions relating to zero-emission technologies based on the underlying principle that the system should be coherent with the Alternative Fuel Infrastructure Regulation (AFIR)
• Excluding fossil fuels from the certification process when it comes to the certification of fuels but also improving the provision to make the process more future-proof
• Amending the provisions on revenues generated from the FuelEU penalties and their allocation to projects to support decarbonisation of the maritime sector with an enhanced transparency mechanism
• Further specifying the Commission's obligations to monitor the implementation of the regulation in the relevant report and review clause

The provisional deal is now subject to formal approval by the Council and Parliament.