FuelEU Maritime is a key legislative initiative by the European Union (EU) aimed at decarbonizing the maritime transport sector. It forms part of the broader Fit for 55 package, which seeks to reduce the EU’s greenhouse gas (GHG) emissions by at least 55% by 2030, compared to 1990 levels. The FuelEU Maritime Regulation establishes limits on the GHG intensity of energy used onboard ships, gradually tightening over time, and promotes the use of renewable and low-carbon fuels in shipping.
Given that maritime transport is responsible for around 3-4% of total EU GHG emissions, FuelEU Maritime is a central policy tool for aligning the sector with the EU’s climate neutrality goals by 2050.
What is FuelEU Maritime?
Adopted in July 2023 and set to apply from January 1, 2025, the FuelEU Maritime Regulation sets binding requirements to reduce the GHG intensity of fuels used by ships calling at EU ports. Rather than mandating a specific fuel type, the regulation is fuel-neutral and performance-based, meaning ship operators can choose from various technologies or fuel solutions—such as e-methanol, green ammonia, biofuels, or e-fuels—as long as they meet the required emissions standards.
It complements other legislative pillars, such as:
- The EU Emissions Trading System (EU ETS) for maritime,
- The Energy Taxation Directive,
- And the Alternative Fuels Infrastructure Regulation (AFIR).
Scope and Applicability
FuelEU Maritime applies to:
- Ships of 5,000 gross tonnage and above, regardless of flag,
- Voyages departing from or arriving at EU ports, including both intra-EU and extra-EU voyages.
It covers the GHG intensity of the energy used onboard, accounting not just for CO₂ but also for methane (CH₄) and nitrous oxide (N₂O)—expressed in CO₂-equivalent (CO₂e) terms over a full Well-to-Wake (WtW) lifecycle.
GHG Intensity Reduction Targets
The regulation sets a progressive reduction trajectory for GHG intensity, compared to a 2020 reference level:
- -2% by 2025
- -6% by 2030
- -14.5% by 2035
- -31% by 2040
- -62% by 2050
These targets are designed to drive early adoption of sustainable maritime fuels and technologies, stimulating market demand and innovation.
Key Provisions
- Fuel Flexibility
The regulation allows ship operators to select the most suitable fuel, technology, or operational strategy—so long as they meet the GHG intensity requirements. - Carbon Intensity Certification
Fuels must be certified for GHG performance under recognized sustainability certification schemes, such as those compliant with RED II or the FuelEU framework. - Zero-emission port calls
From 2030 onwards, ships must use onshore power supply (OPS) or zero-emission technologies while docked at major EU ports, reducing local air pollution and emissions. - Compliance Mechanism and Penalties
Operators must submit annual monitoring reports. Non-compliance results in financial penalties, and persistent failure may lead to restrictions on port access. - Pooling Mechanism
FuelEU introduces a compliance pooling option where fleets can collectively meet targets, allowing overperformance by some ships to offset underperformance by others.
Benefits of FuelEU Maritime
- Accelerates decarbonization of a traditionally hard-to-abate sector.
- Promotes innovation and competitiveness in clean maritime technologies.
- Encourages supply chain development for low-carbon and renewable fuels.
- Improves air quality in port cities by reducing sulfur, nitrogen oxides, and particulate matter.
- Aligns maritime transport with EU Green Deal and REPowerEU objectives.
