FuelEU Maritime
What is FuelEU Maritime?
FuelEU Maritime is a regulation under the EU’s “Fit for 55” package, officially in force since 1 January 2025 as Regulation (EU) 2023/1805. It aims to accelerate the decarbonization of maritime transport by increasing the use of renewable and low-carbon fuels on vessels operating within, to, and from the European Union. It also provides legal certainty to ship operators and fuel suppliers by driving demand for cleaner maritime fuels.
How does the FuelEU Maritime regulation work?
FuelEU Maritime applies to cargo and passenger ships above 5,000 gross tonnage (GT), regardless of flag, when calling at EU and EEA ports. The regulation sets limits on the greenhouse gas (GHG) intensity of the energy used onboard ships, aiming to progressively reduce emissions compared to a 2020 baseline and relies on EU MRV (Monitoring, Reporting and Verification) data. GHG intensity refers to the amount of CO₂-equivalent produced per unit of energy consumed (expressed in gCO₂e/MJ). Under FuelEU, emissions from CO₂, CH₄, and N₂O are taken into account, whereas EU ETS only uses CO₂ emissions, This is measured from a well-to-wake perspective (EU ETS = tank-to-wake), accounting for all emissions from fuel production, transport, bunkering, and final use onboard.
How to comply with FuelEU Maritime?
Compliance with FuelEU Maritime can be achieved by using fuels that meet the required GHG intensity limits and reducing onboard energy use. This can be done through a range of technical solutions—from low-cost options like voyage planning and energy management, to medium-impact upgrades such as hull optimisation, batteries, and energy-saving devices, or high-impact retrofits like dual-fuel engines and wind-assisted propulsion systems.
Recognising that these investments take time and resources, the EU has introduced several flexibility mechanisms to support shipowners:
- Banking: Surplus compliance achieved in one year can be carried forward by the same vessel to offset future obligations.
- Borrowing: Operators may borrow a limited amount of expected future compliance to cover current shortfalls, subject to a 10% penalty on the borrowed value.
- Pooling: Vessels can form a compliance pool (within a company or across operators) where surplus from one ship offsets a shortfall on another.
Go to the next chapter to get more information on the flexibility mechanisms.
Penalty System
Operators who fail to meet the annual GHG intensity targets face financial penalties linked to the amount of energy used that exceeds the allowable GHG intensity limit. The penalty is equal to €2,400 per tonne of VLSFO energy equivalent,
- 1 tonne of VLSFO equals to 41 GJ of energy. This results in a penalty of €2,400/41 = €580 per GJ energy used
- 1 tonne of VLSFO emits around 3.75 tonne CO2. This results in a penalty of approximately €2400/3,75 = €640 per tonne of CO2 equivalent.
What is the scope of FuelEU Maritime?
Who must comply?
- Included: All cargo and passenger vessels over 5,000 GT.
- Exempted: Warships, naval auxiliaries, fishing vessels, and primitive wooden ships.
Geographical scope:
- 100% of energy used on voyages between EU/EEA ports.
- 50% of energy used on voyages between an EU/EEA port and a non-EU/EEA port.
- Note: As of now, Norway and Iceland are considered third-country ports under FuelEU.
