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Promoting the use of low and zero carbon fuels

EU ‘Fit for 55’

Fuel EU
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The EU have set a target of reducing net greenhouse gas emissions by at least 55% by 2030 to help combat climate change and achieve climate neutrality by 2050.

To meet the target the EU are putting in place various pieces of legislation aimed at providing a transition to renewable and low-carbon fuels across a range of sectors, including maritime/shipping.

Included in this is:

  • FuelEU Regulation – which aims to reduce the greenhouse gas intensity of energy used onboard ships by 80% by 2050.
  • Emissions Trading Scheme Directive – shipping is being added to the EU emissions trading scheme from 2024, with first surrendering of allowances in 2025.
  • Monitoring, Recording and Verifying CO2 emissions. This Regulation has been in place for several years, but it’s being made more stringent by including other greenhouse gases too while being applied to smaller ships in the future.
  • Alternative Fuels Infrastructure Regulation ensuring that alterative fuels are available for bunkering and that zero-emissions energy is available whilst some ships are at berth.
  • The Renewable Energy Directive will provide updated emission factors for existing and new fuels that are expected to allow shipping to transition to future of low carbon emissions.

The EU is the process of negotiating and updating its legislation in this area. As new legislation is agreed these Fit for 55 pages will be updated.

The new and updated EU legislation above is applicable across the European Economic Area (EEA - the EU plus Norway and Iceland). Throughout our oversight of the requirements, please read EU as being synonymous with the EEA.

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