FuelEU: What the EU climate plan means for shipping fuel

July 23, 2021

The European Commission, as part of its Fit for 55 package, proposed to introduce a GHG intensity target that increases in stringency over time, requiring ships calling at EU ports to reduce the carbon footprint of the energy used onboard. But the proposed regulation fails to give appropriate incentives to invest in zero-emission vessels and would likely result in the accelerated uptake of liquid natural gas (LNG).

Green e-fuels – notably e-hydrogen and e-ammonia – can be supplied in large quantities to the sector. However, as nascent technologies, they are more expensive and require investments in new vessels and port infrastructure. However, if equipped with the right tools, the FuelEU Maritime can kickstart the deployment of renewable-based e-fuels in shipping and help to decarbonise the sector by 2050.

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