, the European Union's flagship legislation to decarbonise the EU marine sector, was recently adopted by the 

. The regulation is a part of the EU’s Fit for 55 package, aiming to reduce GHG emissions from commercial vessels of 5,000 gross tonnes and over, irrespective of their flag, though fishing vessels are exempted.

The proposal was presented by the European Commission in July 2021. By June 2022 the Transport Council reached a general approach on the proposal. After negotiations between the Council and the European Parliament, a provisional agreement was achieved in March 2023. The FuelEU Maritime regulation was then adopted by the Council in July 2023. The regulation was published in the Official Journal of the EU on 22 September 2023. While most of the new provisions will be in effect from 1 January 2025, Articles 8 and 9 will be applicable starting 31 August 2024.

0923 FuelEU Maritime  - Final timeline

The key provisions addressed in the new regulation (FuelEU Maritime) are as follows:

The shipping sector must gradually reduce greenhouse gas intensity, from 2% in 2025 to 80% by 2050.

A unique incentive system supports the uptake of high-decarbonization RFNBO fuels.

Fossil fuels are excluded from the regulation's certification.

By 2030, major EU ports require passenger ships and containers to use on-shore power while docked, reducing port air pollution.

Ships can voluntarily pool compliance balances, but the overall pool must meet average greenhouse gas intensity limits.

Time-sensitive exceptions cater to remote regions, small islands, and areas reliant on connectivity.

'FuelEU penalties' revenues should fund maritime decarbonisation projects, with improved transparency.

The Commission will monitor the regulation's enforcement via reporting and reviews.

The regulation encompasses the energy consumption on the ship at an EU port and on trips between EU ports as well as 50% of the energy consumed on journeys departing from or arriving at an EU port.

How does FuelEU Maritime enhance the prospects of the renewable gas sector?

FuelEU Maritime seeks to amplify the uptake of renewable and low-carbon fuels in maritime transport by setting progressively tighter restrictions on the carbon intensity of energy consumed by ships, beginning in 2025.

0923 FuelEU Maritime - Final GHG target

Generally, the new legislation would favour the biofuel market as it passes responsibility for compliance to the shipping companies. The mandate to reduce GHG emissions together with the inception of ‘FuelEU penalties’ should oblige companies to switch to more environmentally friendly fuels. This will result in creating demand for and promoting consistent adoption of renewable and low-carbon fuels.

A significant advantage for the renewable gas sector leans towards renewable fuels of non-biological origin (RFNBO), particularly for various forms of hydrogen for marine transport. 

 sets out a dedicated incentive and a sub-target for RFNBO as detailed in Article 5 “Use of Renewable Fuels of Non-Biological Origin”. The provision aims to accelerate demand for RFNBO from the shipping sector with safeguards and flexibility towards different possible market uptake scenarios.

Since FuelEU Maritime offers a combination of supportive measures and indicates foreseeable future minimum demand for RFNBO in the shipping sector, it could serve as a clear signal to the fuel industry for investment opportunities in scalable RFNBO as well as a substantial trading market for RFNBO, both domestically and internationally.

Regarding biomethane, biomethane produced from sustainable feedstock as specified in Article 29 of Directive (EU) 2018/2001 is viewed to gain advantages from this regulation.

To this end, a surge in the consumption of renewable and low-carbon fuels by the maritime sector could boost the liquidity of the green gas certificate market, which is beneficial to both hydrogen and biomethane. For the biomethane certificate market, biomethane certificates from sustainable feedstock would gain the advantage. The pricing trajectory for the green gas certificates will depend on the interplay between fuel demand and supply, carbon prices, and the green attributes (carbon intensity) associated with the fuels.

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The adoption of the FuelEU Maritime proposal could potentially favour the renewable gas sector. Renewable fuels of non-biological origin (RFNBO), especially various forms of hydrogen, for marine applications are likely to receive significant advantages from the new regulation.