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Green fuels signatories urge for ambitious FuelEU Maritime

by The Editorial Team
January 19, 2023
in Emissions
fueleu maritime

Credit: Danish Shipping

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Signatories representing the entire value chain of green fuels call on politicians to aim for a proactive and ambitious regulation in the present FuelEU Maritime trialogue.

More than 40 associations and companies including fuel suppliers, end-users and maritime technology suppliers sent a joint letter to key policymakers / decision takers calling for an ambitious FuelEU Maritime regulation.

In the letter, the signatories encourage the co-legislators to fully seize the opportunity to make EU a global leader in green shipping by raising the ambitions via a higher GHG-intensity target on the one hand and to promote the uptake of green, sustainable e-fuels by including a multiplier mechanism to reward first movers and a dedicated binding sub-quota to ensure an industry-wide uptake.

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Danish Shipping supports the joint letter that has received massive backing from key organisations in the green transition of European shipping.

We need to stimulate the ramp up of alternative, sustainable fuels already in this decade. FuelEU Maritime is a unique opportunity, and it is so important that we get it right from the start by introducing the mechanisms – multiplier and sub-quota – that will help driving the uptake of green, sustainable fuels

said Maria Skipper Schwenn, Executive Director of Climate, Environment and Security at Danish Shipping.

To incentivise the uptake of green fuels, the signatories call for a multiplier mechanism that will stimulate the use of the far more expensive e-fuels.

Applying such a mechanism would allow a company to be in compliance despite using a smaller volume of new e-fuels compared to other more market-ready green fuels, such as sustainable biofuels.

A multiplier will send a strong signal to end-users and producers, that e-fuels must be part of the future fuel-mix for shipping, and that investments can be placed to scale-up production.

To provide e-fuel producers and shipping companies with certainty in their investment and planning horizon, the signatories encourage the legislators to go further and maintain the binding 2 % sub-quota for renewable fuels of non-biological origin as proposed by the European Parliament.

By 2030 at least five percent of the world fleet should be operating on green fuels, so we need to speed up the productions of e-fuels. The sooner, we start testing and scaling these green solutions, the better

added Ms. Schwenn.

Finally, the signatories believe that an exemption for small companies in FuelEU Maritime is counterproductive. The rules need to apply for large as well as small shipping companies as we all need to pull in the same direction in the transition.

During 2022, the Transport and Tourism Committee adopted a draft negotiating mandate on the deployment of alternative fuels infrastructure by 36 votes to 2 and 6 abstentions on Monday evening.

It aims to cut maritime sector greenhouse gas (GHG) emissions from ships by 2% as of 2025, 20% as of 2035 and 80% as of 2050 (Commission proposed a 13% and 75% reduction).

This would apply for ships above a gross tonnage of 5000, in principle responsible for 90% of CO2 emissions, to all energy used on board in or between EU ports, and to 50% of energy used on voyages where the departure or arrival port is outside of the EU.

MEPs also set a target of 2% of renewable fuels usage and mandated containerships and passenger ships to use on-shore power supply while at berth at main EU ports as of 2030. This would significantly reduce air pollution in ports.

explore more at the joint letter of fueleu maritime

Green fuels signatories urge for ambitious FuelEU MaritimeGreen fuels signatories urge for ambitious FuelEU Maritime
Green fuels signatories urge for ambitious FuelEU MaritimeGreen fuels signatories urge for ambitious FuelEU Maritime
Tags: Danish ShippingdecarbonizationEUFuelEU Maritimegreen practicesreducing shipping emissionsregulatory update cmreports
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