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FuelEU implementation to be postponed in Norway and Iceland

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December 30, 2024,
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Sara Kosmajac

The FuelEU Maritime regulation, set to enter drive January 1, 2025, will face delays in its software to Norway and Iceland on account of its postponed incorporation into the European Financial Space (EEA) Settlement, the UK-based classification society Lloyd’s Register (LR) revealed.

Illustration. Courtesy of IMO

The Norwegian Maritime Authority (NMA) elaborated that this delay occurred as a result of ‘convoluted’ nature of the EEA course of which entails a number of steps, however that Norway is striving to expedite the EEA Joint Committee’s resolution.

“We now have labored laborious to make sure the brand new laws enters into drive in Norway on 1 January 2025. The Norwegian laws is able to be adopted however can solely take impact following a call by the EEA Joint Committee,” mentioned Alf Tore Sørheim, Interim Director Common of Transport and Navigation.

As knowledgeable, the Norwegian Maritime Authority has beforehand urged all delivery firms lined by this laws to stick to the EU deadlines for making a FuelEU monitoring plan and, despite the delay, the NMA nonetheless recommends to all ship homeowners and operators to gear up ‘forward of time’, i.e. earlier than the regulation is formally carried out within the nation.

That mentioned, as a direct results of the postponement, all the ports in each Norway and Iceland will probably be thought to be third-country ports in a FuelEU context from January 1, 2025, till the incorporation within the EEA Settlement, the NMA mentioned.

“Which means, throughout this era, solely half of the vitality consumed between a port of name in Norway or Iceland and a port of name within the EU will fall below the scope of FuelEU. Vitality consumed on voyages inside Norway or between Norway and non-EU international locations throughout this era will stay outdoors the scope of FuelEU,” Marte Hustveit Hauge, Senior Adviser, Division for Laws and Worldwide Relations at NMA, elaborated.

As per LR, FuelEU Maritime—which was given the official inexperienced mild by the EU Council in 2023 after its ultimate guidelines had been adopted—does allow particular routes and ports in respect of the vitality used on voyages carried out by passenger ships (other than cruise ships) between ports of name positioned on an island with fewer than 200,000 inhabitants inside a Member State to be exempted.

Along with this, passenger ships that present maritime transport providers below public service obligations or contracts on sure routes between mainland and island ports may also be exempted.

Such examples may be present in Denmark, Greece, Italy and Malta, LR shared, the place exceptions for sure ports, islands and passenger ships have been granted. Nevertheless, the classification society underscored that FuelEU Maritime doesn’t allow these exemptions to use past December 31, 2029.

With the regulation being simply days away, Norway’s classification society DNV lately mirrored on the challenges that FuelEU Maritime could deliver to trade gamers as they recalibrate their methods to satisfy all the mandatory stipulations.

In its whitepaper “FuelEU Maritime – Necessities, compliance methods, and industrial impacts”, DNV positioned a specific emphasis on the matter of compliance, outlining suggestions and ways for shipowners to navigate the upcoming new actuality.

Compliance prices have been a burning situation for a lot of maritime stakeholders, however, in response to DNV, there are a variety of actions that may be adopted to cut back prices with out penalty.

As an example, DNV’s research unveiled that utilizing liquefied pure fuel (LNG) and bio-LNG may very well be the least expensive compliance technique because it gives a decrease well-to-wake GHG depth than wanted throughout the first 10 years of the interval in comparison with MGO-fueled vessels.

Amongst different suggestions, DNV additionally proposed to shipowners that they:

  • Start making ready the group and fleet for FuelEU Maritime and determine probably the most optimum compliance technique;
  • Contemplate long-term gas offtake agreements to make sure entry to low GHG depth fuels;
  • Look additional into energy-efficiency measures to cut back gas and compliance value;
  • Embody provisions for FuelEU Maritime in contractual phrases and guarantee entry to verified emissions information.

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