Subcommittee to develop contractual solutions to help compliance with ...

Subcommittee to develop contractual solutions to help compliance with FuelEU Maritime Regulation

Published: 13 March 2024

BIMCO has established a dedicated subcommittee to examine the implications of the FuelEU Maritime Regulation, a key component of the EU's Fit for 55 legislative package. The regulation is a central pillar of the EU's commitment to reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050.

The subcommittee's mission is to understand the regulatory requirements and develop practical contractual solutions that will help the industry achieve compliance with ease.

The FuelEU Maritime Regulation, known for its complexity and extensive influence, has led us to take this step. The subcommittee will guide our members and the wider industry, promoting a unified approach to meet the regulation's demands.

The regulation itself mandates a cut in the GHG intensity of energy used on ships and encourages the adoption of onshore power supply or zero-emission technology when in port. It offers a variety of compliance strategies for ship operators, including the use of e-methanol and e-ammonia, blending biofuels with conventional fuel, or using biodiesel.

A pooling mechanism has been introduced by the European Commission as part of the regulatory framework to further reduce GHG intensity. This approach allows vessels to team up either within a single company or across different companies, share credits, and collectively strive to meet emission reduction targets. The subcommittee will focus on these aspects in its work.

In line with BIMCO's commitment to fostering industry-wide collaboration, we plan to invite more stakeholders to join our discussions and contribute to the drafting process. This approach will help us develop effective contractual frameworks that align with the FuelEU Maritime Regulation.

Background

From 1 January 2025, ships above 5000GT trading in the EU or European Economic Area will be required to comply with the FuelEU Maritime Regulation. See our FuelEU topic page with Frequently Asked Questions.

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