FuelEU FAQs
FuelEU Maritime Regulation
What is FuelEU Maritime Regulation?
FuelEU Maritime (FEUM) Regulation is a policy tool put forth by the European Union to promote the use of cleaner fuels in shipping. A Document of Compliance (DOC) is issued upon. To read or watch a quick summary of FuelEU, click here.
What types of ships does FuelEU Maritime apply to?
FuelEU Maritime Regulation currently applies to all ships above 5000 GT that carry cargo or passengers. It is applicable for the following ship types :
- Bulk Carriers
- Gas Carriers
- Tankers
- Container Ships
- General Cargo Ships
- Refrigerated Cargo Carriers
- Combination Carriers
- LNG Carriers
- Vehicle Carriers
- Ro-Ro Cargo Vessels
- Ro-Ro Passenger Vessels
- Cruise Ships
Which type of Ships will be exempt?
Fuel EU Maritime Regulation considers The following ship types are excluded :
– Warships
– Naval Auxiliary Ship
– Fish-catching or processing Ship
– Ship not propelled by mechanical ways
– Govt. ship used for non-commercial use
– Wooden Ships of a primitive build
Maritime transport-related emissions are around a 1000 million tonnes of CO2 per year. Because of the ever-increasing trade between nations, shipping fleets are going increase by 50%-250% in the coming 15 years. With the current rate of emission, this will violate the Paris Agreement which agrees to keep global temperature rise to below 2 degrees C, compared to pre-industrial levels.
In 2013, the EU Commission set out a plan to progressively integrate in their policy a scope for reducing maritime emissions. They came up with 3 steps :
– MRV of CO2 emissions from large ships calling EU ports
– GHG reduction targets for maritime transport sector
– Further mesasures, including market-based measures, in medium to long term.
What are the timelines for FuelEU?
There are strict penalties in case of non-compliance. They are defined by each Member State. Ship that have failed to comply with MRV for 2 consecutive times face the possibility of expulsion.
Who is responsible for FuelEU?
There are strict penalties in case of non-compliance. They are defined by each Member State. Ship that have failed to comply with MRV for 2 consecutive times face the possibility of expulsion.
Monitoring Plans
What is the process to submit MPs?
Companies submit monitoring plans to the verifier through the THETIS portal.
These MPs can be prepared in any language as agreed between the company & the verifier. They just have to ensure that there is an English translation available for the same.
Verifier must assess if the MP conforms with the requirements laid down in the MRV. If not found conforming, the verifier shall ask the company to revise the MP.
What is the format to submit MPs?
Companies must draft MPs in the THETIS-MRV system, based on a template defined in Annex 1 in EU Website. Apart from the mandatory fields, there are some voluntary fields as well, such as ice class or other procedures that are relevant to monitoring of fuel consumed & CO2 emitted.
Can monitoring plans be modified?
Companies are required to check at least once a year whether a ship’s MP reflects the nature & functioning of the ship and whether the methods can be improved
Port Emissions
How to report EU Port emissions?
GHG emissions that released at berth in an EEA port of call are covered & must be reported annually as a separate item in the emissions report.
GHG Emissions that were released within EEA ports when ship is not at berth but instead moving within a port of call between 2 voyages, must be accounted for when reporting GHG emissions which occured within ports. In such a case, cargo carried & distance travelled do not have to be monitored & reported.
Voyage V/S Port Emissions : Examples
Emissions within a port of call = Emissions at Berth + Emissions from Movements in Port. These emissions from movements in port are the ones taking place within port limits but only when they aren’t included in a voyage.
Emissions related to entry or exit from ports are in the Voyage’s scope, as they occur before or after the port of call.
RFNBOs
How does EU follow the share of RFNBOs in yearly energy used onboard by ships?
GHG emissions that released at berth in an EEA port of call are covered & must be reported annually as a separate item in the emissions report.
GHG Emissions that were released within EEA ports when ship is not at berth but instead moving within a port of call between 2 voyages, must be accounted for when reporting GHG emissions which occured within ports. In such a case, cargo carried & distance travelled do not have to be monitored & reported.
Are there any exemptions for RFNBO subtarget?
GHG emissions that released at berth in an EEA port of call are covered & must be reported annually as a separate item in the emissions report.
GHG Emissions that were released within EEA ports when ship is not at berth but instead moving within a port of call between 2 voyages, must be accounted for when reporting GHG emissions which occured within ports. In such a case, cargo carried & distance travelled do not have to be monitored & reported.
Are there any exemptions for RFNBO subtarget?
GHG emissions that released at berth in an EEA port of call are covered & must be reported annually as a separate item in the emissions report.
GHG Emissions that were released within EEA ports when ship is not at berth but instead moving within a port of call between 2 voyages, must be accounted for when reporting GHG emissions which occured within ports. In such a case, cargo carried & distance travelled do not have to be monitored & reported.
Voyages & Ports of Call
Which voyages fall under FuelEU’s scope?
For a voyage to be covered by the EU-MRV, at least one of the 2 ports of call of the voyage must be located in an EU area.
Thus, voyages into, within & out of the EU shall be recorded.
A port of call is a start or an endpoint of a voyage, where a ship stops to load / unload cargo, or embark / disembark passengers. A stop for refueling, gathering suppliers, relieving crew members, dry-docking, or providing ship repairs. It isn’t a port call when a ship needs to take shelter because of adverse weather, or help in search & rescue operations or distress calls.
In EU-MRV context, a voyage is considers as a journey between 2 consecutive ports of call when at least one of the ports of call is at an EU port.
The EU-MRV regulation is relevant within the EEA (European Economica Area), which according to various treaties includes all EU Members States, Iceland, Norway & the EEA outermost regions such as Canary Islands, Azores, French Guiana, Guadeloupe, Madeira, Martinique, Gibraltar, Mayotte, Reunion, and the island of Saint Martin.
What happens in case of partial load ?
There is no mumimum treshold of cargo loaded or unloaded for such a stop to qualify as a port of call.
What are trans-shipment Ports?
CII is a measure of the amount of CO2 emitted per unit cargo (tonne) over a particular distance (knots)
It tells us how efficient the Vessel is. According to IMO’s latest circular, Ships are graded according to their CII Rating
GHG Intensity of Energy
What is GHG Intensity of energy used onboard?
Ships that have a compliance defecit for GHG Intensity of Energy used onboard, or for the RFNBO sub-target as of 1st June of the verification period.
Ships that have made at least one non-compliant port call duing the reporting period
How was the reference value of 91.16 reached?
Ships that have a compliance defecit for GHG Intensity of Energy used onboard, or for the RFNBO sub-target as of 1st June of the verification period.
Ships that have made at least one non-compliant port call duing the reporting period
How is GHGIE calculated for LNG vessels?
Ships that have a compliance defecit for GHG Intensity of Energy used onboard, or for the RFNBO sub-target as of 1st June of the verification period.
Ships that have made at least one non-compliant port call duing the reporting period
What technologies can contribute to reduction of GHGIE used onboard ships?
Ships that have a compliance defecit for GHG Intensity of Energy used onboard, or for the RFNBO sub-target as of 1st June of the verification period.
Ships that have made at least one non-compliant port call duing the reporting period
Ships that have a compliance defecit for GHG Intensity of Energy used onboard, or for the RFNBO sub-target as of 1st June of the verification period.
Ships that have made at least one non-compliant port call duing the reporting period
Fuel EU Penalties
What are the penalties for non-compliance?
Ships that have a compliance defecit for GHG Intensity of Energy used onboard, or for the RFNBO sub-target as of 1st June of the verification period.
Ships that have made at least one non-compliant port call duing the reporting period
How are FuelEU penalties caclulated?
For a ship which made a non-compliant port call, the company has to pay a penalty by 30th June of the verification period. The level of penalty is determined by 3 factors :
– 1.5 Euros/kWH
– Total Electric Power demand of ship at berth (in KW)
– No. of non-compliant hours at berth
How is compliance defecit determined?
If a change of company occurs, previous company shall produce a verified report covering the same elements as the annual emissions report but limited to the period corresponding to the activities carried out under the company’s responsibility such as ‘partial emissions report’ (PER) during the reporting period
This PER shall be submitted to the new company, Flag State, responsible admin-istering authority & the EU Commission, through THETIS-MRV before the vessel is released from the company’s fleet.
What are the consequences of failing to pay penalties?
According to Art. 25 of the FuelEU Maritime Regulation, failing to pay a penalty may result in expulsion from Ports, Flag detentions and potentially restricted access to ports in multiple Members States
Who collects FuelEU penalties?
If a change of company occurs, previous company shall produce a verified report covering the same elements as the annual emissions report but limited to the period corresponding to the activities carried out under the company’s responsibility such as ‘partial emissions report’ (PER) during the reporting period
This PER shall be submitted to the new company, Flag State, responsible admin-istering authority & the EU Commission, through THETIS-MRV before the vessel is released from the company’s fleet.
How are revenues from FuelEU penalties used?
According to Art. 23, Para 11, the revenue generated from Fuel EU penalties shall be used to :
A. Support the deployment, production & use of renewable & low-carbon fuels;
B. Support construction of bunkering facilities or OPS in Ports; and
C. Support the development, testing & deployment of innovative technologies in the fleet to achieve significant emission reductions.
How Ecosail helps with your EU-MRV?
Ecosail follows a proactive approach to EU-MRV. Our module for Eco-Compliance has a meticulous vessel reporting feature which not only helps in easy fulfilling of MRV obligations, but also gives you an idea about how to save fuel and calculate your voyage emissions ahead of time.
Apart from the above questions, we at Ecosail are happy to help our fellow maritime companies with any further information that they wish to seek!
Contact us for for EU-MRV Obligations
Check our Voyage Calculator now!
Our voyage calculator will help you to estimate the amount of CO2 you will emit during a particular voyage and the EU-MRV implications it carries. It will also give you the EUA of a particular voyage.
Get a FREE Voyage Report by using our online voyage calculator!