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Provisional deal reached on new EU maritime fuels rules

Provisional deal reached on new EU maritime fuels rules
The world’s container terminals handle around 80 percent of global trade by volume every year. They are also a significant contributor to greenhouse gas (GHG) emissions due to their use of non-renewable electricity. Maersk’s network of container terminals, owned and operated by APM Terminals, has committed to a 70 percent reduction in total emissions by 2030, and to be completely net zero by 2040.

The European Parliament and Council have reached a provisional agreement on cleaner maritime fuels, asking to cut shipping emissions by 2 percent as of 2025 and by 80 percent as of 2050, to help the EU become climate neutral.

A provisional agreement reached early on March 23, 2023, between the European Parliament and Council negotiators sets up a fuel standard for ships to steer the EU maritime sector towards the uptake of renewable and low-carbon fuels and decarbonization.

During the talks, MEPs succeeded in ensuring that ships will have to gradually reduce greenhouse gas (GHG) emissions by cutting the amount of GHG in the energy they use – below the 2020 level of 91.16 grams of carbon dioxide (CO2) per MJ) – by 2 percent as of 2025, 6 percent as of 2030, 14.5 percent as of 2035, 31 percent as of 2040, 62 percent as of 2045 and 80 percent as of 2050.

This would apply to ships above a gross tonnage of 5 000, which are in principle responsible for 90 percent of CO2 emissions, and to all energy used on board in or between EU ports, as well as to 50 percent of the energy used on voyages where the departure or arrival port is outside of the EU or in EU outermost regions.

This agreement sets out by far the world’s most ambitious path to maritime decarbonization. No other global power has drafted such a comprehensive framework to tackle maritime emissions. This is truly ground-breaking, said EP rapporteur Jörgen Warborn (EPP, SE).

MEPs also ensured that the Commission will review the rules by 2028 to decide whether to extend emission-cutting requirements to smaller ships or to increase the share of the energy used by vessels coming from non-EU countries.

The deal gives more credits, as an incentive, in the form of offsetting emissions to those ship owners who use renewable fuels of non-biological origin (RFNBO) from 2025 to 2034.

It also sets a 2 percent renewable fuels usage target as of 2034 if the Commission reports that in 2031 RFNBO amount to less than 1 percent in the fuel mix.

Plugging into an on-shore power supply

According to the preliminary agreement, containerships and passenger ships will be obliged to use an on-shore power supply for all electricity needs while moored at the quayside in major EU ports as of 2030.

It will also apply to the rest of EU ports as of 2035 if these ports have an on-shore power supply. This should significantly reduce air pollution in ports.

Certain exemptions, such as staying at port for less than two hours, using own zero-emission technology, or making a port call due to unforeseen circumstances or emergencies, will apply.

This regulation will force others to move too. Europe will do its fair share, but European citizens and companies should not foot the bill for the entire world’s climate efforts. We guarantee the sector long-term rules and predictability so that they dare to invest. Shipping companies and ports can focus their resources on delivering the greatest climate benefits and the most value for money. This protects the jobs of seafarers, dockworkers, and workers in the export industry, and sets an example for other countries to follow, said Jörgen Warborn.

The informal deal on sustainable maritime fuels rules still needs to be approved by the Council Committee of Permanent Representatives and Parliament’s Transport and Tourism Committee, and then the Parliament and Council as a whole.

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