ECSA recently published a position paper, calling on transport ministers to fix enforcement loopholes in FuelEU Maritime.
European shipowners propose the introduction of a shared responsibility between the EU fuel suppliers and the shipping sector.
Both EU fuel suppliers and shipping companies will have to comply with the EU fuel standards and meet the targets of the new Regulation. EU fuel suppliers will have to make cleaner fuels available in the market and ships will have to purchase these fuels made available at EU ports. Fuel suppliers will be responsible for the availability and for the compliance with quality and safety requirements for fuels.
We welcome the increased climate ambition and the flexibility provided under the FuelEU Maritime for meeting the targets. We also support a life cycle analysis of the fuels as a prerequisite for delivering carbon savings and for enabling a holistic approach. However, all these positive elements will be undermined and FuelEU may become a missed opportunity if the enforcement concerns are not addressed. Thus, we are pleased to see that enforcement is one of the major points that the EU Transport ministers will discuss tomorrow in the Council.
…said Claes Berglund, ECSA’s President.
Fostering demand is key and a shared responsibility between the EU fuel suppliers and shipping companies will ensure the uptake of cleaner fuels in shipping and the delivery of real carbon savings.
In addition, any revenues generated under the EU ETS should contribute to lowering the price differential between cleaner and conventional fuels. European shipowners have consistently called for the establishment of a fund under the EU ETS to leverage the revenues so that cleaner fuels become commercially available. ECSA welcomes the proposal for Carbon Contracts for Difference under the new EU ETS Innovation Fund.
“European shipowners have put forward workable solutions that deliver emissions reductions and safeguard industry’s competitiveness. A shared responsibility between the EU fuel suppliers and shipping companies will address substantial enforcement loopholes and will foster demand for cleaner fuels in the EU. The use of the ETS revenues under a sector-dedicated fund will lower the price differential and will contribute to making cleaner fuels commercially available in the market” said Sotiris Raptis, ECSA’s acting Secretary General.
ECSA supports the introduction of a multiplier of 4 to improve the competitiveness of cleaner fuels in the market. The use of cleaner fuels will be encouraged and incentivised by multiplying their contribution towards the targets of the FuelEU Maritime. European shipowners also support a full alignment of the Alternative Fuels Infrastructure Regulation (AFIR) with the FuelEU proposal by introducing additional port infrastructure requirements for other types of cleaner fuels such as hydrogen and ammonia.
European shipowners call on #Transport ministers to fix enforcement loopholes in #FuelEU Maritime; find the technical annex to our position paper below: https://t.co/lUPbCGcVTq #Fitfor55 #shipping pic.twitter.com/aYb6htZg7l
— ECSA European Community Shipowners' Associations (@EU_shipping) December 9, 2021
Summary ECSA position on FuelEU Maritime
ECSA concerned about:
- Substantial enforcement loopholes undermining environmental objectives
- Verification relying on paper documents
- Lack of consistency with other proposals (RED and RefuelEU Aviation) by making ships and not fuel suppliers subject to fuel standards
- Unnecessary administrative burden (new MRV and double reporting)
- Penalising ships for lack of Onshore Power Supply
ECSA recommends:
- Consistency with RED and ReFuelEU Aviation
- Shared responsibility between EU fuel suppliers & shipping companies to meet FuelEU targets
- EU fuel suppliers responsible for fuel availability and compliance with quality and safety requirements
- Shipping companies purchase cleaner fuels available in EU ports
- Fostering demand by bridging the price gap between cleaner and conventional fuels: 1. Sector-specific fund & investment of EU ETS revenues in energy transition, 2. Use of carbon contracts for difference under EU ETS innovation fund, 3. Introduction of multiplier of 4 for cleaner fuels in FuelEU.
- OPS exemption if infrastructure is not available
- Additional port infrastructure requirements for more fuel types such as hydrogen and ammonia
- Special conditions applying to ice classed vessels
Concluding, EU Transport ministers are expected to discuss the FuelEU Maritime proposal during the meeting of the Transport Council on 9 December.
