Congestion fears as box lines plan to dodge EU carbon tax with UK first-call
The UK appears to have become the hot EU ETS-dodging destination du jour, with many ...
© Andrew Norris
Companies need to be prepared for the introduction of FuelEU Maritime in less than two months – those without updated digital solutions could find themselves riding “a wave of regulatory pain”, according to director of performance at smart shipping innovation platform Navtor, Jacob Clausen.
The regulation, coming into force on 1 January, sets targets for the greenhouse gas (GHG) intensity of the energy used on a ship, with targets getting stricter every five years. Legally, compliance begins on 30 April 2026, at which point 2025’s figures are digested.
The GHG intensity requirement applies to 100% of the energy used on voyages and port calls within the EU, and 50% of voyages in and out. To become compliant, companies will need to either pay a penalty or take action to bring their GHG intensity within FuelEU limits.
Mr Clausen warned: “That seems like plenty of time, but to understand where your fleet performs in terms of GHG intensity you need insights now.”
He urged that having “awareness of today’s operational reality” could “inform the action you take for that all-important compliance”.
However, Friederike Hesse, co-founder and MD of maritime carbon solutions software platform zero44, told The Loadstar: “After the summer break, many companies put more focus on the upcoming regulation and are gaining more clarity. But it is still a process that is far from being completed.”
She added: “In parallel to understanding FuelEU, many companies still need to clean up EU ETS while the first compliance period is coming to an end. Internal processes and data prerequisites are by far not fully sorted out in many companies. So, there is a lot of work to be done around EU regulations.”
Ms Hesse noted that “it is still an open question which compliance options companies will choose”, but that the “optimal path is highly individual”.
“It depends on the amount of trade in the EU, the availability and price of alternative fuels, the specific charter and ship management agreements in place, etc. Pooling is still being discussed a lot, but that does not necessarily mean it is smart for everyone to pool,” she explained.
Mr Clausen added: “If you’re lucky enough to have a surplus, it pays dividends to utilise it – through banking or pooling – and if you’re not, you can perhaps borrow to avoid penalties. But, again, to get real business value out of this you have to have a strategy to optimise allowances.”
And, according to him, this “crucial strategic planning” can “no longer be done with an Excel sheet”, as the scale of data and calculations required “opens up wide panoramas for missteps, omissions and human error”.
Discrepancies in the process could “potentially set off a ripple capable of growing into a wave of regulatory pain”, he warned. “Spreadsheets have had their time in their sun. Sophisticated businesses… simply can’t rely on traditional methodology to comprehend and navigate the… requirements set by FuelEU Maritime.
“Allowing an automated system to take the strain, collecting and validating the necessary data, at the optimal quality standard… could work to deliver not only compliance, but also far greater insights into energy consumption and performance, unlocking green benefits and powerful bottom line advantages.”
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