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European Parliament agrees shipping green fuels deal

The European Parliament and Council have reached a deal on the use of cleaner maritime fuels with shipping cutting GHG content of fuel by 2% in 2025, and 80% by 2050.

Marcus Hand, Editor

March 23, 2023

2 Min Read
EU flags fluttering in the wind
Photo: EU/Mauro Bottaro

The provisional deal between European Parliament and Council negotiators is designed to steer maritime towards an uptake of renewable and low carbon fuels.

The targets apply to ships over 5,000 gt and call for a 2% cut in the GHG content of fuels by 2025 from a 2020 level of 91.16 grams of CO2 per MJ. The level of reduction increases to 6% as of 2030, 14.5% as of 2035, as of 2040, 62% as of 2045 and 80% as of 2050.

The reductions apply 100% of energy on voyages between EU ports and to 50% of energy used on voyages where the arrival or departure port outside the EU or the EU’s outermost regions.

The rules will be reviewed by the commission in 2028 to decide whether to extend the rules to smaller ships and also vessels from non-EU ports.

The deal gives more credits, as an incentive, in the form of offsetting emissions to those ship owners who use renewable fuels of non-biological origin (RFNBO) from 2025 to 2034. If RFNBO usage is below 1% by 2030 a target of 2% will be set for 2035.

EP rapporteur Jorgen Warborn commented : “This agreement sets out by far the world’s most ambitious path to maritime decarbonisation. No other global power has drafted such a comprehensive framework to tackle maritime emissions. This is truly ground-breaking.

Related:European Parliament passes ETS shipping changes

“This regulation will force others to move too. Europe will do its fair share, but European citizens and companies should not foot the bill for the entire world's climate efforts.”

The deal also covers the use shoreside power for containerships and passenger ships at major EU ports by 2030, and all other EU ports by 2035 if shoreside power is available.

The informal deal on sustainable maritime fuels rules still needs to be approved by the Council Committee of Permanent Representatives and Parliament’s Transport and Tourism Committee, and then the Parliament and Council as a whole.

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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