Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the use of renewable and low-carbon fuels in maritime transport and amending Directive 2009/16/EC
Date: 2021-07-14
Institutions: Directorate-General for Mobility and Transport, European Commission
Subjects: energy resources, greenhouse gas, marine fuel, maritime transport, pollution from ships, reduction of gas emissions, renewable resources

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   EUROPEAN COMMISSION  Brussels, 14.7.2021  COM(2021) 562 final/2 2021/0210 (COD)  CORRIGENDUM  This document corrects document COM(2021) 562 final of 14.07.2021 Concerns all language versions Addition of the missing Legislative Financial Statement The text shall read as follow:  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the use of renewable and low-carbon fuels in maritime transport and amending Directive 2009/16/EC (Text with EEA relevance) {SEC(2021) 562 final} - {SWD(2021) 635 final} - {SWD(2021) 636 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

By contributing to around 75% of EU external trade volumes and 31% of EU internal trade 
volumes, maritime transport is an essential component of Europe’s transport system and plays 
a critical role for the European economy. Every year, around 400 million passengers embark 
or  disembark  in  EU  ports,  including  around  14  million  on  cruise  ships.  Maritime  transport 
fulfils an important  role  in  safeguarding the connectivity of islands  and peripheral  maritime 
regions  with  the  rest  of  the  single  market1.  Efficient  maritime  transport  connections  are 
essential to the mobility of EU citizens, in developing EU regions and to the EU economy as a 
whole. 

The maritime transport sector operates in  an environment  of open markets  and international 
competition.  Maritime  transport  services  within  the  EU  are  open  to  all  EU  shipowners, 
maritime transport services between EU Member States, and between EU Member States and 
third countries (non-EU countries), can be provided by operators of all nationalities. A level 
playing  field  for ship  operators  and shipping companies is  critical  to  a  well-functioning EU 
market for maritime transport.  

In September 2020, the Commission adopted a proposal to cut greenhouse gas emissions by at 
least  55%  by  20302  and  put  the  EU  on  a  responsible  path  to  becoming  climate  neutral  by 
2050.  To  achieve  climate  neutrality,  a  90%  reduction  in  transport  emissions  is  needed  by 
2050.  All  transport  modes,  including  maritime  transport,  will  have  to  contribute  to  the 
reduction efforts. 

Achieving significant reductions in CO2 emissions of international maritime transport requires 
using  both  less  energy  (increasing  energy  efficiency)  and  cleaner  types  of  energy  (using 
renewable  and  low-carbon  fuels).  The  Communication  on  the  2030  Climate  Target  Plan3 
explains that: “Both the aviation and maritime sectors will need to scale up efforts to improve 
the  efficiency  of  aircraft,  ships  and  their  operations  and  to  increase  the  use  of  sustainably 
produced  renewable  and  low-carbon  fuels.  This  will  be  assessed  in  greater  detail  in  the 
context  of  the ReFuelEU Aviation  and FuelEU Maritime initiatives that aim to  increase the 
production  and  the  uptake  of  sustainable  alternative  fuels  for  these  sectors.  The  necessary 
technology development and deployment has to happen already by 2030 to prepare for much 
more rapid change thereafter.”  

Depending on the policy scenarios assessed in the framework of the 2030 Climate Target Plan 
(CTP)  and  in  support  of  the  Sustainable  and  Smart  Mobility  Strategy,  renewable  and  low-
carbon fuels should represent between 6% and 9% of the international maritime transport fuel 
mix in 2030 and between 86% and 88% by 2050 to contribute to the EU economy-wide GHG 
emissions reduction targets4. 

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in 

figures, 

the  statistical  pocketbook  2020,  https://ec.europa.eu/transport/media/media-

EU  Transport 
corner/publications_en 
COM(2020) 563 final 
COM(2020) 562 final 
The scenario assessing a combination of carbon pricing and regulatory measures (so-called MIX) projects a share 
of 7.5% for 2030 and 86% by 2050. 

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The CTP notes that the  renewables share in  the  transport sector has to  increase through the 
development of electrification, advanced biofuels and other renewable and low carbon fuels 
as part of a holistic and integrated approach, and that hydrogen based synthetic fuels will be 
crucial for the decarbonisation in particular in the aviation and maritime sector. 

The push for the maritime transport sector to use cleaner fuels is also present at international 
level. In 2018, the International Maritime Organisation (IMO) has adopted its initial strategy 
on the reduction of GHG emissions from ships. In the list of identified candidate short-term 
measures, the IMO includes promoting the uptake of alternative low-carbon and zero-carbon 
fuels and providing shore-side electricity. 

Currently,  the  fuel  mix  in  the  maritime  sector  relies  entirely  on  fossil  fuels.  This  can  be 
explained by insufficient incentives for operators to cut emissions and by the lack of mature, 
affordable,  and  globally  utilisable  technological  alternatives  to  fossil  fuels  in  the  sector.  A 
number of market failures partly cause and reinforce these problems. These include: 

– 

– 

– 

interdependencies between supply, distribution and demand of fuels;  

lack of information on future regulatory requirements;  

long life span of assets (vessels and bunkering infrastructure). 

The FuelEU Maritime initiative proposes a common EU regulatory framework to increase the 
share  of  renewable  and  low-carbon  fuels  in  the  fuel  mix  of  international  maritime  transport 
without creating barriers to the single market.  

Considerations on possible obstacles to the single market, distortion of competition between 
operators  and  diversion  of  trade  routes  are  particularly  relevant  to  fuel  requirements,  since 
fuel costs make up a substantial share of ship operators’ costs. The proportion of fuel costs in 
the operating costs of ships can range from around 35% of the freight rate of a small tanker to 
around 53% for container/bulk vessels. Therefore, variations in marine fuel prices may impact 
significantly the economic performance of ship operators.  

At the same time, the price differential between conventional marine fuels of fossil origin and 
renewable low-carbon fuels remains high. To maintain competitiveness while still steering the 
sector  towards  the  fuel  transition  that  it  must  inevitably  undertake,  clear  and  uniform 
obligations are needed on ships’ use of renewable low-carbon fuels.  

An increased predictability of the regulatory framework is  expected to  stimulate technology 
development  and  fuel  production  and  help  the  sector  unlock  the  existing  chicken-and-egg 
situation between demand and supply of renewable and low-carbon fuels. Clear and uniform 
obligations on ship’s use of energy is necessary to mitigate the risk of carbon leakage, which 
maritime transport is prone to due to its international nature and the possibility to bunker fuel 
outside  the  EU.  Owing  to  the  cross-border  and  global  dimension  of  maritime  transport,  a 
common  maritime  Regulation  is  preferred,  over  a  legal  framework  requiring  EU  Member 
States  to  turn  EU  legislation  into  national  law.  The  latter  could  result  in  a  patchwork  of 
national measures with differing requirements and targets.  

• 

Consistency with existing policy provisions in the policy area 

The FuelEU Maritime is part of the ‘basket of measures’ designed to address emissions from 
maritime  transport  while  maintaining  a  level  playing  field.  It  is  fully  consistent  with  other 
measures presented as part of the ‘Fit for 55’ package and builds on existing policy tools such 

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the  Council5, 
as Regulation (EU)  2015/757  of 
which establishes  an  EU  system  to  monitor,  report  and  verify  (MRV)  CO2 emissions  and 
other relevant information from large ships using EU ports. 

the  European  Parliament  and  of 

A basket of measures is considered necessary to address various and distinct market failures 
hindering  the  deployment  of  mitigation  actions  in  the  maritime  sector.  Beside  the  FuelEU 
Maritime  initiative  that  aims  at  increasing  the  demand  for  renewable  and  low-carbon  fuels 
(RLF), the Commission proposes to extend the European Emissions Trading System (ETS)6 
to  the  maritime  sector  and  to  review  the  Energy  Taxation  Directive  (ETD)7.  These  two 
initiatives should ensure cost-effective emission reductions in the sector and that the price of 
transport reflects the impact it has on the environment, health and energy security.  

In  addition,  the  basket  of  measures  will  include  the  review  of  several  other  directives, 
including: 

– 

– 

the Alternative Fuels Infrastructure Directive (AFID)8; and  
the Renewable Energy Directive (RED II)9.  

Next to these revised laws, the Commission will address the need for additional research and 
innovation  (R&I)  activities,  in  particular  through  the  co-programmed  Zero  Emissions 
Waterborne  Transport  partnership  proposed  by  the  Waterborne  Technology  Platform  under 
Horizon Europe10. It will also revise the Guidelines on State aid for environmental protection 
and  energy11  in  line  with  the  policy  objectives  of  the  European  Green  Deal,  which  should 
allow sufficient funding of the sector’s green transformation (including for deployment of on-
shore charging infrastructure), while avoiding distortion of competition. 

Looking in more detail at the proposed actions, there is currently no mechanism, either at the 
IMO  level  or  at  EU  level,  to  correct  for  the  presence  of  negative  externalities  (the  indirect 
costs  of  emissions  that  are  otherwise  not  considered)  in  the  sector.  This  prevents  operators 
from taking into account, in their operational and investment choices, the social cost of their 
activity in terms of climate change and air pollution. The economic literature indicates pricing 
mechanisms  as  the  instruments  of  choice  to  ‘internalise’  external  costs.  The  main  examples 
would be a tax fixed at the level of the external cost, or a ‘cap and trade’ instrument, such as 
the EU Emission Trading System (ETS), that sets a limit to the overall emissions and lets the 
market determine their appropriate price. Both are described as ‘market-based measures’.  

However, while emissions trading can achieve GHG emissions reductions cost‑effectively and 
provides  a  uniform  price  signal  that  influences  decisions  of  operators,  investors  and 
consumers,  it  does  not  sufficiently  address  all  barriers  to  the  deployment  of  low  and  zero-
emissions solutions.  

Additional policy actions are needed to ensure that the level playing field in maintained while 
removing  obstacles  to  investments  in  clean  energy  technologies  and  infrastructure,  in  turn 
reducing abatement costs and complementing the action of the EU ETS. This is particularly 

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Regulation  (EU)  2015/757  of  the  European  Parliament  and  of  the  Council  of  29  April  2015  on  the  monitoring, 
reporting  and  verification  of  carbon  dioxide  emissions  from  maritime  transport,  and  amending  Directive 
2009/16/EC  (OJ L 123, 19.5.2015, p. 55).  
Directive 2003/87/EC  
Council Directive 2003/96/EC  
Directive 2014/94/EU 
Directive (EU) 2018/2001 
https://www.waterborne.eu/  
Communication from the Commission (2014/C 200/01) 

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relevant  to  support  mitigation  measures  –  such  as  the  use  of  RLF  in  the  maritime  transport 
sector – that have a high potential to reduce emissions in the future but which, presently, face 
high abatement costs as well as specific market barriers. 

While  extending  the  EU  ETS  to  the  maritime  sector  will  further  drive  energy  efficiency 
improvements and narrow the price gap between conventional and low-emission technologies, 
its ability to support the rapid deployment of RLF technologies in the maritime sector strongly 
depends on its actual price level, which is unlikely to reach sufficient levels for this purpose in 
the short to medium term. 

Similarly, legislation dealing with fuel supply (RED II) and infrastructure (AFID) has not had 
a  significant  impact  on  the  uptake  of  RLF  in  the  maritime  sector  and  needs  to  be 
complemented by measures that are  capable of  creating a  demand  for RLF.  In  addition,  the 
review of the RED II would not be able to address the high risk of fuel bunkering outside the 
EU for the shipping sector.  

There  is  currently  no  EU  regulatory  framework  specifically  addressing  the  use  of  RLF  in 
maritime transport. This initiative intends to fill this gap by increasing the demand for RLF in 
maritime transport while maintaining a level playing field and a well-functioning EU market 
for marine fuels and maritime transport. 

• 

Consistency with other Union policies 

This  initiative  aims  at  increasing  the  uptake  of  RLFs  in  EU  maritime  transport  while 
maintaining a level playing field, both at sea and at berth, and contribute to achieving EU and 
international  climate  and  environmental  objectives.  Ensuring  a  more  diverse  fuel  mix  and 
higher  penetration  of  RLFs  is  critical  to  ensure  the  sector’s  contribution  to  the  European 
ambition of climate-neutrality by 2050 as laid out in the European Green Deal. At the same 
time, a differentiated approach to the use of RLFs in navigation and in ports is important to 
account for different implications on air pollution with more stringent requirements for ships 
in ports and different availability of technologies (more options for ships in ports).  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This  initiative  aims  at  maintaining  high  levels  of  connectivity,  and  preserving  industry 
competitiveness in the maritime sector while stepping up its sustainability. Article 100(2) of 
the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  empowers  the  Union  to  lay 
down appropriate provisions in sea transport.  

• 

Subsidiarity (for non-exclusive competence)  

Maritime transport is an international sector by nature. In Europe, approximately 75% of the 
voyages reported under the MRV are within the European Economic Area (EEA) (and could 
therefore be a proxy for intra-EU traffic) and only around 9% of the traffic is estimated to be 
domestic  voyages  (between  ports  within  the  same  EU  Member  State).  The  cross-border 
dimension of the sector is therefore essential and calls for coordinated action at EU level.  

Without  action  at  EU  level,  a  patchwork  of  regional  or  national  requirements  across  EU 
Members  States  would  risk  triggering  the  development  of  technical  solutions  that  may  not 
necessarily be compatible with each other. Several EU Member States are already developing 
national  maritime  strategies  that  include  specific  approaches  to  ship  emissions  and  in 

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particular  the  uptake  of  alternative  fuels12  with  possible  unintended  effects  and  market 
distortions.  As  the  problem  drivers  identified  in  the  context  of  this  proposal  do  not 
fundamentally  differ  from  one  EU  Member  State  to  another,  and  given  the  cross-border 
dimension of sector’s activities, these issues can be best addressed at EU level. EU action can 
also  inspire  and  pave  the  way  to  develop  future  measures  accelerating  the  uptake  of 
alternative fuels at global level13.  

Previous EU action on GHG issues has already stimulated a corresponding response from the 
IMO, notably the EU adopting the Regulation on Monitoring, Reporting and Verification of 
GHG emissions  from  ships led shortly  afterwards to  the  IMO adopting a similar mandatory 
global  GHG  Data  Collection  System.  A  coordinated  approach  by  EU  Member  States  in 
responding  to  developments  in  GHG  emission  reduction  at  IMO  has  more  recently  ensured 
that mandatory operational energy efficiency measures are included within IMO’s short term 
actions  to  reduce GHG.  Projecting a common viewpoint from  a considerable group of  IMO 
Member States within the IMO fora means that the EU can have a significant impact on the 
direction and outcome of IMO discussions. 

• 

Proportionality 

The implementation  of this initiative at  the EU level  is  needed to  achieve the economies of 
scale  in  the  uptake  of  RLFs  in  maritime  transport  as  well  as  avoiding  carbon  leakage,  and 
ensuring level playing field between operators calling in EU ports and between the EU ports 
themselves. To give an example, obligations established at national level on the use of RLFs 
could  divert  traffic  to  competing  ports  of  other  Member  States  and  distort  competition. 
Accordingly,  harmonisation  at  EU  level  is  necessary  to  ensure  a  level  playing  field  for  all 
actors of the maritime cluster (in particular, operators, ports and fuel suppliers).  

• 

Choice of the instrument 

The impact assessment established that binding, regulatory measures are necessary to achieve 
the  objectives.  A  regulation  is  the  most  appropriate  instrument  to  ensure  common 
implementation  of  the  measures  envisaged,  while  reducing  the  risk  of  distortion  within  the 
single  market,  which  could  result  from  differences  in  how  EU  Member  States  turn  the 
requirements in national law. As the transition to RLFs requires significant investments from 
fuel  suppliers,  fuel  distribution  and  a  strong  and  clear  demand  push,  it  is  vital  that  the 
regulatory framework provides a single, long-term and robust set of rules to all investors EU-
wide.  In  particular,  it  is  important  to  avoid  creating  a  patchwork  of  differing  measures  at 
national level, which would be the case if implemented under a cross-sectoral directive. 

The proposal is highly technical in nature, and there is a high likelihood that it will have to be 
regularly amended to reflect technical and legal developments. To respond to this, a number 
of  implementing  measures  are  also  planned.  These  will  focus  particularly  on  the  technical 
specifications to implement the functional requirements. 

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This includes national plans being developed by the Netherlands, Sweden and Italy (in the form of their ‘Guidelines 
for Energy and Environmental Planning Documents of the Port System  Authorities (DEASP)’. Non-EU Member 
States like the UK and Norway have also established their own plans. It is important to mention them in this respect 
as their objectives may affect short-sea shipping traffic to and from the EU.  
Currently listed in the Initial IMO Strategy on reduction of GHG emissions from ships among candidate mid-term 
measures, i.e. measures to be agreed by the IMO between 2023 and 2030. 

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3. 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

As this is a new proposal, no evaluations or fitness check have been carried out. 

• 

Stakeholder consultations 

The  Commission  actively  engaged  with  stakeholders  and  conducted  comprehensive 
consultations  throughout  the  impact  assessment  process.  Stakeholders’  views  started  to  be 
collected in response to the publication of the inception impact assessment (March and April 
2020). A total of 81 replies were received, which informed the drafting process and helped to 
refine the approach and better identify the barriers that hamper the current use of RLFs in the 
maritime sector.  

As part of preparing the proposal, other consultation activities included:  

– 

– 

– 

– 

An  open  public  consultation,  organised  by  the  Commission,  running  from  2  July 
2020  to  10  September  2020.  A  total  of  136  responses  were  received,  covering  a 
variety  of  stakeholder  groups.  The  responses  came  from  ship  owning  and  ship 
management  (40),  energy  producers  and  fuel  supply  (37),  short  sea  shipping  (25), 
national  public  authorities  (15),  interest  organizations  (14),  ports  management  and 
administrators  (13),  port  terminal  operator  or  other  port  services  provider  (13), 
academia  research  and  innovation  (12),  inland  waterways  sector  (11),  shipbuilding 
and  marine  equipment  manufacturers  (10),  regional  or  local  public  authorities  (9), 
logistics  suppliers,  shippers  and  cargo  owners  (9),  technical  standardization  bodies 
and class societies (2), investment and financing (2), and other (17)14; 

A targeted stakeholders consultation organised by the consultant responsible for the 
impact  assessment  support  study,  running  from  18  August  2020  to  18  September 
2020 and directed at experts from the European Sustainable Shipping Forum (ESSF). 
The  consultant  also  conducted  a  series  of  interviews  with  stakeholders,  including 
industry  representatives  and  national  authorities,  between  10  July  2020  and  1 
December 2020; 

A stakeholders roundtable, organised by the Commission on 18 September 2020 with 
members of European Sustainable Shipping Forum15 (ESSF) and the European Ports 
Forum16 (EPF); 

Regular  expert  group  meetings,  in  the  framework  of  the  ESSF  sub-group  on 
sustainable alternative power for shipping. 

The information provided by stakeholders was key in allowing the Commission to refine the 
design  of  the  policy  options  as  well  as  to  assess  their  economic,  social  and  environmental 
impacts,  compare  them  and  determine  which  policy  option  is  likely  to  maximize  the 
benefits/costs ratio for the society.  

The  consultations  showed  that  there  is  consensus  among  all  stakeholder  groups  on  the 
importance  of  addressing  the  uptake  of  RLFs  in  maritime  transport  as  well  as  the  specific 
problems identified by the impact assessment.  

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16 

https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12312-FuelEU-Maritime-/public-
consultation  
https://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupDetail&groupID=2869  
https://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupDetail&groupID=3542  

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The  consultations  confirmed  that  all  five  drivers  identified  in  the  framework  of  the  impact 
assessment  of  the  proposal  are  relevant.  The  results  suggest  that  the  different  stakeholders 
agree that high fuel and investment costs together with uncertainty for investors are the most 
important barriers. In terms of policy objectives, ‘providing more certainty on the climate and 
environmental requirements  for  ships in  operation’ appears to  be the most  important  policy 
objective in view of stakeholders.  

All  stakeholder  groups  also  expressed  a  preference  for  goal-based  over  prescriptive  policy, 
which also concurs with another requirement for the policy voiced by most stakeholders, the 
technology  neutrality.  On  policy  measures,  setting  a  clear  regulatory  pathway  for 
decarbonising the current  marine fuel  received the highest  scores from  the stakeholders. On 
geographical scope, there was no obvious preference on the right geographical scope for the 
measures.  In  terms  of  measuring  environmental  performance  and  how  emissions  should  be 
included in the policy framework, most stakeholders prefer a “well-to-wake” approach as that 
it takes  into account  not only emissions from  the combustion of fuel  on board the ship,  but 
also  upstream  emissions  from  production,  transport,  and  distribution  of  fuels.  On  ships  at 
berth,  requirements  on  the  use  of  on-shore  power  supply  are  found  to  be  relevant  and 
necessary for achieving the decarbonisation objectives by most stakeholders. 

• 

Collection and use of expertise 

A  study  was  conducted  by  an  external  contractor  to  support  the  impact  assessment 
underpinning the proposal. This study was launched in July 2020 and was concluded in March 
2021. The study provided valuable insights to the Commission services notably to design the 
policy  options,  assess  some  of  the  expected  impacts,  and  collect  the  views  of  the  directly 
impacted  stakeholders.  The  Commission  services  also  relied  on  the  support  from  the 
European  Maritime  Safety  Agency  (EMSA)  on  technical  aspects  related  to  the  present 
initiative.  

• 

Impact assessment 

The  policy  measures  included  in  this  proposal  are  informed  by  the  results  of  an  impact 
assessment. The impact assessment report [SWD(2021)635] received a positive opinion from 
the  Commission  Regulatory  Scrutiny  Board  [SEC(2021)562].  In  its  opinion,  the  Board 
provided a number of recommendations about the presentation of the arguments in the impact 
assessment  report.  These  recommendations  have  been  addressed;  Annex  1  to  the  impact 
assessment report provides a summary outline of how this was done.  

Three policy options have been considered in the context of the impact assessment to achieve 
the identified objectives. These three options all share two main characteristics: 

(1) 

(2) 

the regulatory nature to provide legal certainty; and  

the  focus  on  demand-side  aspects  to  stimulate  production  and  uptake  of  RLFs, 
address the chicken-and-egg situation and avoid carbon leakage.  

Policy options provided different ways to design the obligation and  differed in particular on 
their approach to technology choice and the way the required performance is achieved.  

Policy option 1 is designed as a prescriptive approach, requiring share of specific fuels / fuel 
types to be used. It implies a technology selection by the regulator. Both policy options 2 and 
3 are goal-based approaches, requiring a maximum yearly average GHG intensity limit to be 
met for the energy used on-board. This leaves the choice of technology to market operators. In 
addition, policy option 3 contains also mechanisms to reward over-achievers to encourage the 

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development  of  more  advanced,  zero-emissions  technologies  (pooling  and  multipliers  for 
zero-emission  technologies)  reducing  both  air  pollutants  and  greenhouse  gases.  All  options 
require the most polluting ships in ports (containerships, and passenger ships) to use on-shore 
power supply (or equivalent zero-emission technology).  

Following the assessment, policy option 3 is identified as the preferred option as it strikes the 
best balance between the objectives and the overall implementation costs. It not only answers 
the  needs  for  flexibility,  which  have  been  stressed  by  stakeholders  during  the  consultation 
activities  (in  particular  operators  and  ports),  but  also  reduces  the  risk  of  technology  lock-in 
[and incentivises the early adoption of most advanced technologies]. 

The  increased  penetration  of  RLFs  in  the  maritime  fuel  mix  will  translate  into  significant 
reduction  of  greenhouse  gas  emissions  and  air  pollution  emissions.  The  related  savings  in 
external  costs  have  been  estimated  at  EUR  10bn  for  air  pollution  and  EUR  138.6bn  for 
climate change, relative to the baseline and expressed as present value for 2021-2050 period. 
These  have  been  calculated  in  the  impact  assessement  based  on  the  modelled  projected 
penetration  of  renewable  and  low  carbon  fuels.  Savings  in  the  order  of  EUR  2.3bn  are 
expected to be realised by ship operators due to reduced operating costs (maintenance, crew, 
etc.). This reduction will be driven by somewhat lower maritime transport activity relative to 
the  baseline.  An  additional  noticeable  impact  concerned  the  use  of  advanced  fuels  and 
propulsion  technologies,  and  indirectly  the  impact  it  has  on  innovation.  The  initiative  is 
expected to boost the penetration of fuel cell-powered vessels (18.9%) in the fleet as well as 
electric propulsion (5.4%) by 2050 (compared to no penetration of these technologies in the 
baseline). 

The  main  cost  resulting  from  the  proposed  intervention  is  borne  by  ship  operators  and 
amounts to EUR €89.7bn. It results from increased capital costs (EUR 25.8bn) and fuel costs 
(EUR  63.9bn).  Indirect  costs  for  the  ports  will  relate  to  the  provision  of  the  necessary 
bunkering  infrastructure  and  are  estimated  at  EUR  5.7bn.  Administrative  costs  for  ship 
operators  are  estimated  at  EUR  521.7m  resulting  from  data  collection,  submission  and 
verification of the compliance plans and the annual energy report, cooperation during audits 
and inspections as  well as crew training. Additional  EUR 1.8m  have been identified for the 
establishment  of  guidelines  by  ports  to  guarantee  the  safe  handling  of  RLFs.  Specific  costs 
related to fuel  certification could not be quantified. Enforcement costs for public authorities 
are  expected  to  be  limited  (EUR  1.5m)  and  focus  on  the  provision  of  the  necessary  IT 
reporting  tools.  The  preferred  option  thus  provides  net  benefits  amounting  to  EUR  58.4bn 
over the time horizon of the initiative. 

• 

Fundamental rights 

The proposal has no implications on the protection of fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  preferred  option  will  have  budgetary  implications  for  the  Commission.  The  expected 
costs of IT services and IT system development are up to EUR 0.5m. This is based on the cost 
of  THETIS-MRV  and  experience  with  existing  THETIS-EU  modules  supporting  various 
pieces  of  EU  legislation,  such  IT-developments  costs  are  estimated  at  EUR  300,000.  The 
preferred policy option would also need an additional functionality to support the pooling of 
ships for compliance. This additional tool is estimated to cost EUR 200,000. IT development 
and  procurement  choices  will  be  subject  to  pre-approval  by  the  European  Commission 
Information Technology and Cybersecurity Board. 

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5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The Commission will follow the progress, impacts and results of this proposal through a set of 
monitoring/evaluation  mechanisms.  The  Commission  will  measure  progress 
towards 
achieving  the  specific  objectives  of  the  proposal,  in  particular  through  the  data  collected 
annually as part of the EU Monitoring, Reporting and Evaluation (MRV) system.  

Requests for information (reports, survey replies) will be carefully balanced so as not to put 
an additional burden on stakeholders by creating disproportionate new reporting requests.  

Five years after the end of the implementation date of the legal proposal, the Commission will 
evaluate  the  rules  to  check  whether  the  initiative’s  objectives  have  been  reached.  The 
evaluation will inform future decision-making processes to ensure the necessary adjustments 
for reaching the set objectives.  

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 describes  the subject  matter of the proposed Regulation,  which lays down rules to 
reduce  the  greenhouse  gas  intensity  of  energy  used  on-board  by  ships  arriving  at,  within  or 
departing from ports under the jurisdiction of a EU Member State, to promote the harmonious 
development and consistent use of renewable and low-carbon fuels across the Union, without 
introducing  barriers  to  the  single  market  to  promote  the  reduction  of  greenhouse  gas 
emissions from maritime transport.  

Article 2 lays down the scope.  

Article 3 sets out several definitions.  

Article 4 establishes  the limit  to  the  yearly  greenhouse  gas  intensity of the energy used on-
board by a ship. 

Article  5  establishes  requirements  for  the  use  of  on-shore  power  supply  or  zero-emission 
energy at berth for specific ship types and lists possible exceptions. 

Article 6 lays down the common principles for monitoring compliance. 

Article 7 establishes what should be included in the monitoring plans. 

Article 8 lists the situations in which the monitoring plan should be amended. 

Article 9 establishes  the  principles related to  the  certification of biofuels,  biogas, renewable 
fuels of non-biological origin and recycled carbon fuels. 

Article 10 lays down the scope of the verification activities to be performed by verifiers. 

Article 11 sets the general obligations and principles for the verifiers. 

Article 12 sets out the main principles to be respected during the verification procedures. 

Article  13  lays  down  the  rules  on  accreditations  of  the  verifiers  for  the  activities  to  be 
performed under the scope of this Regulation. 

Article  14  defines  the  parameters  that  companies  should monitor  and  record  to  demonstrate 
compliance. 

Article  15  sets  out  the  task  for  the  verifiers  in  relation  to  the  information  provided  by  the 
companies. 

Article  16  establishes  the  compliance  database  and  lays  down  the  main  parameters  for 
reporting. 

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Article  17  establishes  flexibility  provisions,  allowing  operators  to  bank  or  borrow,  within  a 
certain limit, a compliance surplus to enable compliance. 

Article  18  sets  out  the  main  principles  and  procedures  for  possible  pooling  of  compliance 
balances. 

Article 19 lays down the conditions to the issue a FuelEU certificate of compliance. 

Article 20 establishes the penalties to be incurred if compliance has not been achieved. 

Article 21 establishes the principles for the allocation of penalties to to support renewable and 
low-carbon fuels in the maritime sector. 

Article  22  establishes  the  obligation  for  ships  to  carry  a  valid  FuelEU  certificate  of 
compliance. 

Article 23 lays down the rules for ship inspections. 

Article 24 establishes the right to review the decisions affecting companies.    

Article  25  requires  the  designation  of  competent  authorities  responsible  for  the  application 
and enforcement of this Regulation. 

Article  26  establishes  the  conditions  conferring  delegated  powers  to  the  Commission  under 
this Regulation. 

Article  27  establishes  the  committee  procedure  for  the  exercise  by  the  Commission  of  the 
power to adopt implementing acts. 

Article 28 requires the Commission to report to the European Parliament and the Council on 
the application of this Regulation, at least every five years. 

Article  29  amends  Directive  2009/16/EC  to  add  the  FuelEU  certificate  of  compliance  to  its 
Annex IV. 

Article 30 sets the date of entry into force and application of this Regulation. 

Annex I defines the formulas and methodology for establishing the yearly average greenhouse 
gas intensity of the energy used on-board by a ship. 

Annex  II  provides  the  list  of  default  values  that  can  be  used  in  determining  the  emission 
factors used in the formula described in Annex I. 

Annex III provides the list of zero-emission technologies that can be used in alternative to the 
connection to on-shore power supply at berth, as well as, specific criteria for their use. 

Annex IV defines the minium elements of the certificates to be issued by the managing body 
of  the  port  in  cases  where  ships  cannot  make  use  of  on-shore  power  supply  for  justified 
reasons. 

Annex V defines the formulas for establishing the ship’s compliance balance and the penalty 
in case of non-compliance. 

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2021/0210 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the use of renewable and low-carbon fuels in maritime transport and amending 
Directive 2009/16/EC 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 100(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee17, 
Having regard to the opinion of the Committee of the Regions18, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1)  Maritime  transport  accounts  for  around  75%  of  EU  external  trade  and  31%  of  EU 
internal trade in terms of volume. At the same time, ship traffic to or from ports in the 
European  Economic  Area  accounts  for  some  11%  of  all  EU  CO2  emissions  from 
transport  and  3-4%  of  total  EU  CO2  emissions.  400  million  passengers  embark  or 
disembark annually in ports of Member States, including around 14 million on cruise 
ships.  Maritime  transport  is  therefore  an  essential  component  of  Europe’s  transport 
system  and  plays  a  critical  role  for  the  European  economy.  The  maritime  transport 
market  is  subject  to  strong  competition  between  economic  actors  in  the  Union  and 
beyond for which a level playing field is indispensable. The stability and prosperity of 
the maritime transport market and its economic actors rely on a clear and harmonised 
policy  framework  where  maritime  transport  operators,  ports  and  other  actors  in  the 
sector can operate on the basis of equal opportunities. Where market distortions occur, 
they  risk  putting  ship  operators  or  ports  at  a  disadvantage  compared  to  competitors 
within the maritime transport sector or in other transport sectors. In turn, this can result 
in  a  loss  of  competitiveness  of  the  maritime  transport  industry,  and  a  loss  of 
connectivity for citizens and businesses 

(2) 

To enhance the Union’s climate commitment under the Paris Agreement and set out 
the steps to be taken to achieve climate neutrality by 2050, and to translate the political 
commitment into a legal obligation, the Commission adopted the (amended) proposal 
for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on  establishing  the 
framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 

17 
18 

OJ C , , p. . 
OJ C , , p. . 

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(3) 

(4) 

(European Climate Law)19 as well as the Communication ‘Stepping up Europe’s 2030 
climate ambition’20. This also integrates the target of reducing greenhouse gas (GHG) 
emissions  by  at  least  55%  compared  to  1990  levels  by  2030.  Accordingly,  various 
complementary  policy  instruments  are  needed  to  motivate  the  use  of  sustainably 
produced  renewable  and  low-carbon  fuels,  included  in  the  maritime  transport  sector. 
The  necessary  technology  development  and  deployment  has  to  happen  by  2030  to 
prepare for much more rapid change thereafter. 

In  the  context  of  fuel  transition  to  renewable  and  low  carbon  fuels  and  substitute 
sources  of  energy,  it  is  essential  to  ensure  the  proper  functioning  of  and  fair 
competition  in  the  EU  maritime  transport  market  regarding  marine  fuels,  which 
account  for  a  substantial  share  of  ship  operators’  costs.  Differences  in  fuel 
requirements  across  Member  States  of  the  Union  can  significantly  affect  ship 
operators’  economic  performance  and  negatively  impact  competition  in  the  market. 
Due to the international nature of shipping, ship operators may easily  bunker in third 
countries  and  carry  large  amounts  of  fuel.  This  may  lead  to  carbon  leakage  and 
detrimental effects on the competitiveness of the sector if the availability of renewable 
and low carbon fuels in maritime ports under the jurisdiction of a Member State is not 
accompanied by requirements for their use that apply to all ship operators arriving at 
and  departing  from  ports  under  the  jurisdiction  of  Member  States.  This  Regulation 
should  lay  down  measures  to  ensure  that  the  penetration  of  renewable  low-carbon 
fuels in the marine fuels market takes place under the conditions of fair competition on 
the EU maritime transport market. 

In order to produce an effect on all the activities of the maritime transport sector, it is 
appropriate that this Regulation covers a share of the voyages between a port under the 
jurisdiction of a Member State and port under the jurisdiction of a third country. This 
Regulation should thus apply to half of the energy used by a ship performing voyages 
arriving  at  a  port  under  the  jurisdiction  of  a  Member  State  from  a  port  outside  the 
jurisdiction  of  a  Member  State,  half  of  the  of  the  energy  used  by  a  ship  performing 
voyages departing from a port under the jurisdiction of a Member State and arriving at 
a port outside the jurisdiction of a Member State, the entirety of the energy used by a 
ship  performing  voyages  arriving  at  a  port  under  the  jurisdiction  of  a  Member  State 
from a port under the jurisdiction of a Member State, and the energy used at berth in a 
port under the jurisdiction of a Member State. Such  coverage of a share of the energy 
used by  a ship  in  both  incoming and outgoing voyages between the Union and third 
countries  ensures  the  effectiveness  of  this  Regulation,  including  by  increasing  the 
positive  impact  on  the  environment  of  such  framework.    Simultaneously,  such 
framework    limits  the  risk  of  evasive  port  calls  and  the  risk  of  delocalisation  of 
transhipment  activities  outside  the  Union.  In  order  to  ensure  smooth  operation  of 
maritime traffic, a level playing field among maritime transport operators and among 
ports,  and  avoid  distortions  in  the  internal  market,  all  journeys  arriving  or  departing 
from  ports under jurisdiction of Member States,  as well as  the stay of ships in  those 
ports should be covered by uniform rules contained in this Regulation. 

(5) 

The rules laid down in this Regulation should apply in a non-discriminatory manner to 
all  ships  regardless  of  their  flag.  For  reasons  of  coherence  with  Union  and 
international rules in the area of maritime transport, this Regulation should not apply 

19 
20 

COM(2020) 563 final 
COM(2020) 562 final 

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(6) 

(7) 

(8) 

to  warships,  naval  auxiliaries,  fish-catching  or  fish-processing  ships,  or  government 
ships used for non-commercial purposes. 

The person or organisation responsible for the compliance with this Regulation should 
be  the  shipping  company,  defined  as  the  shipowner  or  any  other  organisation  or 
person,  such  as  the  manager  or  the  bareboat  charterer,  that  has  assumed  the 
responsibility for the operation of the ship from the shipowner and that, on assuming 
such responsibility, has agreed to take over all the duties and responsibilities imposed 
by  the  International  Management  Code  for  the  Safe  Operation  of  Ships  and  for 
Pollution Prevention. This definition is based on the definition of ‘company’ in Article 
3,  point  (d)  of  Regulation  (EU)  2015/757  of  the  European  Parliament  and  of  the 
Council21, and in line with the global data collection system established in 2016 by the 
International  Maritime  Organization  (IMO).  In  line  with  the  polluter  pays  principle, 
the shipping  company  could,  by means of a contractual  arrangement, hold the entity 
that is directly responsible for the decisions affecting the greenhouse gas intensity of 
the  energy  used  by  the  ship  accountable  for  the  compliance  costs  under  this 
Regulation. This entity would normally be the entity that is responsible for the choice 
of fuel, route and speed of the ship.   

In order to limit the administrative burden, in particular that of smaller operators, this 
Regulation  should  not  apply  to  wooden  ships  of  a  primitive  build  and  ships  not 
propelled by mechanical means and focus on ships with a gross tonnage above 5 000. 
Even though these latter ships represent only approximately 55% of all ships calling at 
ports  under  the    Regulation  (EU)  2015/757  of  the  European  Parliament  and  of  the 
Council, they are responsible for 90% of the carbon dioxide (CO2) emissions from the 
maritime sector. 

The  development  and  deployment  of  new  fuels  and  energy  solutions  requires  a 
coordinated  approach  to  match  supply,  demand  and  the  provision  of  appropriate 
distribution infrastructure. While the current  European regulatory  framework already 
partly  addresses  fuel  production  with  Directive  (EU)  2018/2001  of  the  European 
Parliament  and  of  the  Council22  and  distribution  with  Directive 2014/94/EU  of  the 
European  Parliament  and  of  the  Council23,  there  is  also  a  need  for  a  tool  that 
establishes increasing levels of demand of renewable and low-carbon maritime fuels. 

(9)  While instruments such as carbon pricing or targets on the carbon intensity of activity 
promote  improvements  in  energy  efficiency,  they  are  not  suited  to  bring  about  a 
significant  shift  towards  renewable  and  low-carbon  fuels  in  the  short  and  medium 
term.  A  specific  regulatory  approach  dedicated  to  the  deployment  of  renewable  and 
low-carbon marine fuels and substitute sources of energy, such as wind or electricity, 
is therefore necessary. 

(10)  Policy intervention to stimulate demand of renewable and low-carbon maritime fuels 
should  be  goal-based  and  respect 
technological  neutrality. 
Accordingly, limits should be set on the greenhouse gas intensity of the energy used 
on-board by ships without prescribing the use of any particular fuel or technology. 

the  principle  of 

21 

22 

23 

Regulation  (EU)  2015/757  of  the  European  Parliament  and  of  the  Council  of  29  April  2015  on  the 
monitoring,  reporting  and  verification  of  carbon  dioxide  emissions  from  maritime  transport,  and 
amending Directive 2009/16/EC  (OJ L 123, 19.5.2015, p. 55). 
Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion 
of the use of energy from renewable sources (OJ L 328, 21.12.2001, p. 82). 
Directive 2014/94/EU  of  the  European  Parliament  and  of  the  Council  of  22  October  2014  on  the  deployment  of 
alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1). 

EN 

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(11)  Development and deployment of renewable and low carbon fuels with a high potential 
for sustainability, commercial maturity and a high potential for innovation and growth 
to  meet  future  needs  should  be  promoted.  This  will  support  creating  innovative  and 
competitive fuels markets and ensure sufficient supply of sustainable maritime fuels in 
the  short  and  long  term  to  contribute  to  Union  transport  decarbonisation  ambitions, 
while strengthening Union’s efforts towards a high level of environmental protection. 
For this purpose, sustainable maritime fuels produced from feedstock listed in Parts A 
and B of Annex IX of Directive (EU) 2018/2001, as well as synthetic maritime fuels 
should  be  eligible.  In  particular,  sustainable  maritime  fuels  produced  from  feedstock 
listed in  Part B of Annex IX of Directive  (EU)  2018/2001  are essential, as currently 
the most commercially mature technology to decarbonise martime transport already in 
the short term.  

(12) 

(13) 

Indirect land-use change occurs when the cultivation of crops for biofuels, bioliquids 
and biomass fuels displaces traditional production of crops for food and feed purposes. 
Such additional demand increases the pressure on land and can lead to the extension of 
agricultural  land  into  areas  with  high-carbon  stock,  such  as  forests,  wetlands  and 
peatland,  causing  additional  greenhouse  gas  emissions  and  loss  of  biodiversity. 
Research  has  shown  that  the  scale  of  the  effect  depends  on  a  variety  of  factors, 
including  the  type  of  feedstock  used  for  fuel  production,  the  level  of  additional 
demand  for  feedstock  triggered  by  the  use  of  biofuels,  bioliquids  and  biomass  fuels, 
and the extent to which land with high-carbon stock is protected worldwide. The level 
of  greenhouse  gas  emissions  caused  by  indirect  land-use  change  cannot  be 
unequivocally determined with the level of precision required for the establishment of 
emission  factors  required  by  the  application  of  this  regulation.  However,  there  is 
evidence  that  all  fuels  produced  from  feedstock  cause  indirect  land-use  change  to 
various  degrees.  In  addition  to  the  greenhouse  gas  emissions  linked  to  indirect  land-
use  change  –  which  is  capable  of  negating  some  or  all  greenhouse  gas  emissions 
savings of individual biofuels, bioliquids or biomass fuels – indirect land-use change 
poses  risks  to  biodiversity.  This  risk  is  particularly  serious  in  connection  with  a 
potentially  large  expansion  of  production  determined  by  a  significant  increase  in 
demand.  Accordingly,  no  feed  and  food  crop-based  fuels  should  be  promoted. 
Directive  (EU)  2018/2001  already  limits  and  sets  a  cap    on  the  contribution  of  such 
biofuels, bioliquids and biomass to the GHG emissions savings targets in the road and 
rail transport sector considering their lower environmental benefits, lower performance 
in terms of greenhouse reduction potential and broader sustainability concerns. 

 However,  this  approach  must  be  stricter  in  the  maritime  sector.  The  maritime  sector 
has  currently  insignificant  levels  of  demand  for  food  and  feed  crops-based  biofuels, 
bioliquids  and  biomass  fuels,  since  over  99%  of  currently  used  marine  fuels  are  of 
fossil origin. Therefore, the non-eligibility of food and feed crop-based fuels under this 
Regulation also minimises any risk to slow down the decarbonisation of the transport 
sector, which could otherwise result from a shift of crop-based biofuels from the road 
to  the  maritime  sector.  It  is  essential  to  minimise  such  a  shift,  as  road  transport 
currently remains by far the most polluting transport sector and the maritime transport 
currently uses predominanetly fuels of fossil origin. It is therefore appropriate to avoid 
the  creation  of  a  potentially  large  demand  of  food  and  feed  crops-based  biofuels, 
bioliquids  and  biomass  fuels  by  promoting  their  use  under  this  Regulation. 
Accordingly, the additional greenhouse gas emissions and loss of biodiversity caused 
by all types of feed and food crop-based fuels require that these fuels be considered to 
have the same emission factors as the least favourable pathway. 

EN 

4 

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(14)  The long lead times associated to the development and deployment of new fuels and 
energy solutions for maritime transport require rapid action and the establishment of a 
clear  and  predictable  long-term  regulatory  framework  facilitating  planning  and 
investment  from  all  the  stakeholders  concerned.  A  clear  and  stable  long-term 
regulatory framework will facilitate the development and deployment of new fuels and 
energy solutions for maritime transport, and encourage investment from stakeholders. 
Such  framework  should  define  limits  for  the  greenhouse  gas  intensity  of  the  energy 
used on-board by ships until 2050. Those limits should become more ambitious over 
time  to  reflect  the  expected  technology  development  and  increased  production  of 
marine renewable and low carbon fuels.  

(15)  This Regulation should establish the methodology and the formula that should apply to 
calculate the yearly average greenhouse gas intensity of the energy used on-board by a 
ship.  This  formula  should  be  based  on  the  fuel  consumption  reported  by  ships  and 
consider the relevant emission factors of these fuels. The use of substitute sources of 
energy, such as wind or electricity, should also be reflected in the methodology. 

(16) 

In order to provide a more complete picture of the environmental performance of the 
various energy sources, the GHG performance of fuels should be assessed on a well-
to-wake  basis,  taking  into  account  the  impacts  of  energy  production,  transport, 
distribution  and  use  on-board.  This  is  to  incentivise  technologies  and  production 
pathways  that  provide  a  lower  GHG  footprint  and  real  benefits  compared  to  the 
existing conventional fuels. 

(17)  The well-to-wake performance of renewable and low-carbon maritime fuels should be 
established using default or actual and certified emission factors covering the well-to-
tank and tank-to-wake emissions. The performance of fossil fuels should however only 
be  assessed  through  the  use  of  default  emission  factors  as  provided  for  by  this 
Regulation. 

(18)  A  comprehensive  approach  on  all  the  most  relevant  GHG  emissions  (CO2,  CH4  and 
N2O)  is  necessary  to  promote  the  use  of  energy  sources  providing  a  lower  GHG 
footprint  overall.  In  order  to  reflect  the  global  warming  potential  of  methane  and 
nitrous oxides, the limit set by this Regulation should therefore be expressed in terms 
of ‘CO2 equivalent’. 

(19)  The  use  of  renewable  energy  sources  and  alternative  propulsion,  such  as  wind  and 
solar  energy,  greatly  reduces  the  greenhouse  gas  intensity  of  the  overall  ship  energy 
use.  The  difficulty  to  accurately  measure  and  quantify  these  energy  sources 
(intermittence of the energy use, direct transfer as propulsion, etc.) should not impede 
their  recognition  in  the  overall  ship  energy  use  through  means  of  approximations  of 
their contribution to the ship’s energy balance.  

(20)  Air  pollution  produced  by  ships  (sulphur  oxides,  nitrogen  oxides  and  particulate 
matter)  at  berth  is  a  significant  concern  for  coastal  areas  and  port  cities.  Therefore, 
specific and stringent obligations should be imposed to reduce emissions at berth from 
ships  that  draw  power  from  their  engines  during  their  stay  in  port.  According  to  the 
data collected within the framework of Regulation (EU) 2015/757 in 2018, passenger 
ships  and  containerships  are  the  ship  categories  producing  the  highest  amount  of 
emissions  per  ship  at  berth.  Accordingly,  emissions  from  these  categories  of  ships 
should be addressed as a priority. 

(21)  The  use  of  on-shore  power  supply  (OPS)  abates  air  pollution  produced  by  ships  as 
well as reduces the amount of GHG emissions generated by maritime transport. OPS 

EN 

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represents  an  increasingly  clean  power  supply  available  to  ships  at  berth,  in  view  of 
the growing renewables share in the EU electricity mix. While only the provision on 
OPS  connection  points  is  covered  by  Directive  2014/94/EU  (Alternative  Fuels 
Infrastructure Directive  –  AFID), the demand for and, as a result, the deployment of 
this technology has remained limited. Therefore specific rules should be established to 
mandate the use of OPS by the most polluting ships. 

(22) 

In  addition  to  OPS,  other  technologies  might  be  capable  of  offering  equivalent 
environmental  benefits  in  ports.  When  the  use  of  an  alternative  technology  is 
demonstrated to be equivalent to the use of OPS, a ship should be exempted from its 
use of OPS.  

(23)  Exceptions  to  the  use  of  OPS  should  also  be  provided  for  a  number  of  objective 
reasons, certified by the managing body of the port of call and limited to unscheduled 
port calls for reasons of safety or saving life at sea, for short stays of ships at berth of 
less than two hours as this is the minimum time required for connection, and for the 
use of on-board energy generation under emergency situations.  

(24)  Exceptions in case of unavailability or incompatibility of OPS should be limited after 
ship and port operators have had sufficient time to make the necessary investments, in 
order  to  provide  the  necessary  incentives  for  those  investments  and  avoid  unfair 
competition. As of 2035, ship operators should plan carefully their port calls to make 
sure that they can carry out their activities without emitting air pollutants and GHG at 
berth  and  compromise  the  environment  in  coastal  areas  and  port  cities.  A  limited 
number  of  exceptions  in  case  of  unavailability  or  incompatibility  of  OPS  shoud  be 
maintained  in  order  to  provide  the  possibility  for  occasional  last-minute  changes  in 
port call schedules and calls in ports with incompatible equipment.  

(25)  A robust monitoring, reporting and verification system should be put in place by this 
Regulation in order to trace compliance with its provisions. Such system should apply 
in a non-discriminatory way to all ships and require third party verification in order to 
ensure  the  accuracy  of  the  data  submitted  within  this  system.  In  order  to  facilitate 
achieving the objective of this Regulation, any data already reported for the purpose of 
Regulation (EU) 2015/757 should be used, when necessary, for verifying compliance 
with  this  Regulation  in  order  to  limit  administrative  burden  imposed  on  companies, 
verifiers and maritime authorities. 

(26)  Companies should be responsible for monitoring and reporting the amount and type of 
energy  used  on-board  by  ships  in  navigation  and  at  berth,  as  well  as  other  relevant 
information, such as information on the type of engine on board or presence of wind 
assisting  technologies,  with  a  view  to  showing  compliance  with  the  limit  on  the 
greenhouse  gas  intensity  of  the  energy  used  on-board  by  a  ship  set  out  by  this 
Regulation.  To facilitate the fulfilment of these monitoring and reporting obligations 
and  the  verification  process  by  the  verifiers,  similarly  to  Regulation  (EU)  2015/757, 
companies  should  document  the  envisaged  monitoring  method  and  provide  further 
details  on  the  application  of  the  rules  of  this  Regulation  in  a  monitoring  plan.  The 
monitoring  plan,  as  well  as  its  subsequent  modifications,  if  applicable,  should  be 
submitted to the verifier. 

(27)  Certification  of  fuels  is  essential  to  achieve  the  objectives  of  this  Regulation  and 
guarantee the environmental integrity of the renewable and low-carbon fuels that are 
expected  to  be  deployed  in  the  maritime  sector.  Such  certification  should  be 
undertaken by means of a transparent and non-discriminatory procedure. With a view 
to facilitating certification and limiting the administrative burden, the certification of 

EN 

6 

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biofuels,  biogas,  renewable  fuels  of  non-biological  origin  and  recycled  carbon  fuel 
should  rely  on  the  rules  established  by  Directive  (EU)  2018/2001.  This  approach  of 
certification should also apply to  fuels  bunkered  outside the Union, which should be 
considered  as  imported  fuels,  in  a  similar  way  as  Directive  (EU)  2018/2001.  When 
companies intend to  depart from  the default values provided for by that  Directive or 
this new framework, this should only be done when values can be certified by one of 
the  voluntary  schemes  recognised  under  Directive  (EU)  2018/2001  (for  well-to-tank 
values) or by means of laboratory testing or direct emissions measurements (tank-to-
wake). 

(28)  Verification  by  accredited  verifiers  should  ensure  the  accuracy  and  completeness  of 
the monitoring and reporting by companies and the compliance with this Regulation. 
In  order  to  ensure  impartiality,  verifiers  should  be  independent  and  competent  legal 
entities and should be accredited by national accreditation bodies established pursuant 
to Regulation (EC) No 765/2008 of the European Parliament and of the Council24. 

(29)  Based on the data and information monitored and reported by companies, the verifiers 
should  calculate  and  establish  the  yearly  average  greenhouse  gas  intensity  of  energy 
used on-board by a ship and the ship’s balance with respect to the limit, including any 
compliance  surplus  or  deficit,  as  well  as  the  respect  of  the  requirements  to  use  on-
shore  power  supply  at  berth.  The  verifier  should  notify  this  information  to  the 
company  concerned.  Where  the  verifier  is  the  same  entity  as  the  verifier  for  the 
purpose of Regulation  (EU) 2015/757,  such notification could  be done together with 
the verification report under that Regulation. Such information should be then reported 
by the company concerned to the Commission. 

(30)  The Commission should establish and ensure the functioning of an electronic database 
that  registers  the  performance  of  each  ship  and  ensures  its  compliance  with  this 
Regulation.  In  order  to  facilitate  reporting  and  limit  administrative  burden  to 
companies,  verifiers  and  other  users,  this  electronic  database  should  build  upon  the 
existing  THETIS-MRV  module  and  take  into  account  the  possibility  to  reuse 
information and data collected for the purpose of Regulation (EU) 2015/757. 

(31)  Compliance  with  this  Regulation  would  depend  on  elements  that  could  be  beyond 
control  of  the  company,  such  as  issues  related  to  fuel  availability  or  fuel  quality. 
Therefore,  companies  should  be  allowed  the  flexibility  of  rolling-over  a  compliance 
surplus from one year to another or borrowing an advance compliance surplus, within 
certain  limits,  from  the  following  year.  The  use  of  OPS  at  berth,  being  of  high 
importance for local air quality in port cities and coastal areas should not be eligible 
for similar flexibility provisions. 

(32) 

In order to avoid technology lock-in and continue supporting the deployment of most 
performant  solutions,  companies  should  be  allowed  to  pool  the  performances  of 
different  ships  and  use  the  possible  over-performance  of  one  ship  to  compensate  for 
the  under-performance  of  another  ship.  This  creates  a  possibility  to  reward 
overcompliance  and  incentivates  investment  in  more  advanced  technologies.  The 
possibility  to  opt  for  pooled  compliance  should  remain  voluntary  and  subject  to 
agreement of the concerned companies. 

24 

Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out 
the  requirements  for  accreditation  and  market  surveillance  relating  to  the  marketing  of  products  and 
repealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008). 

EN 

7 

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(33)  A  document  of  compliance  (‘FuelEU  certificate  of  compliance’)  issued  by  a  verifier 
following the procedures established by this Regulation, should be kept on board ships 
as  evidence  of  compliance  with  the  limits  on  the  greenhouse  gas  intensity  of  the 
energy used on-board by a ship  a with  the requirements on the  use of OPS at  berth. 
Verifiers should inform the Commission of the issuance of such documents. 

(34)  The  number  of  non-compliant  port  calls  should  be  determined  by  verifiers  in 
accordance with a set of clear and objective criteria taking into account all the relevant 
information,  including  time  of  stay,  the  amount  of  each  type  and  energy  consumed, 
and the application of any excluding conditions, for each port call in the Union. This 
information should be made available by the companies to the verifiers for the purpose 
of determining compliance. 

(35)  Without prejudice to the possibility of complying through the flexibility and pooling 
provisions, the ships that do not meet the limits on the yearly average greenhouse gas 
intensity of the energy used on-board shall be subject to a penalty that has dissuasive 
effect.  The  penalty  should  be  proportionate  to  the  extent  of  the  non-compliance  and 
remove  any  economic  advantage  of  non-compliance,  thus  preserving  a  level  playing 
field in the sector. It should be based on the amount and cost of renewable and low-
carbon fuel that the ships should have used to meet the requirements of the Regulation.  

(36)  The penalty imposed for each non-compliant port call should be proportionate to the 
cost of using the electricity and at sufficient level to have a dissuasive effect from the 
use  of  more  polluting  energy  sources.  The  penalty  should  be  based  on  the  power 
installed on board the vessel, expressed in megawatts, multiplied by a fixed penalty in 
EUR per hour of stay at berth. Due to lack of accurate figures on the cost of providing 
OPS  in  the  Union,  this  rate  should  be  based  on  the  EU  average  electricity  price  for 
non-household  consumers  multiplied by a factor  of two to  account  for other charges 
related  to  the  provision  of  the  service,  including  among  others  connection  costs  and 
investment recovery elements.  

(37)  The revenues generated from the payment of penalties should be used to promote the 
distribution and use of renewable and low-carbon fuels in the maritime sector and help 
maritime  operators  to  meet  their  climate  and  environmental  goals.  For  this  purpose 
these  revenues  should  be  allocated  to  the  the  Innovation  Fund  referred  to  in  Article 
10a(8) of Directive 2003/87/EC. 

(38)  Enforcement of the obligations relating to this Regulation should be based on existing 
instruments,  namely  those  established  under  Directive  2009/16/EC  of  the  European 
Parliament and of the Council25 and Directive 2009/21/EC of the European Parliament 
and  of  the  Council26.  The  document  confirming  compliance  of  the  ship  with  the 
requirements  of  this  Regulation  should  be  added  to  the  list  of  certificates  and 
documents referred to in Annex IV to Directive 2009/16/EC. 

(39)  Given the importance of consequences that the measures taken by the verifiers under 
this  Regulation    may  have  for  the  companies  concerned,  in  particular  regarding  the 
determination of non-compliant port calls, calculation of the amounts of penalties and 
refusal to issue a FuelEU certificate of compliance, those companies should be entitled 
to apply for a review of such measures to the competent authority in the Member State 

25 

26 

Directive  2009/16/EC  of  the  European  Parliament  and  of  the  Council  of  23  April  2009 on  port  State 
control (OJ L 131, 28.5.2009, p. 57). 
Directive 2009/21/EC of the European Parliament and of the Council of 23 April 2009 on compliance 
with flag State requirements (OJ L 131, 28.5.2009, p. 132). 

EN 

8 

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(40) 

where the verifier was accredited. In the light of the fundamental right to an effective 
remedy, enshrined in Article 47 of the Charter of Fundamental Rights of the European 
Union,  decisions  taken  by  the  competent  authorities  and  the  managing  bodies  of  the 
port  under  this  Regulation  should  be  subject  to  judicial  review,  carried  out  in 
accordance with the national law of the Member State concerned. 

In  order  to  maintain  a  level  playing  field  through  the  efficient  functioning  of  this 
Regulation,  the power to adopt  acts  in accordance with  Article 290 of the Treaty on 
the  Functioning  of  the  European  Union  should  be  delegated  to  the  Commission  in 
respect of amendment of the list of well-to-wake emission factors, amendment of the 
list  of  the  applicable  zero-emission  technologies  or  criteria  for  their  use,  to  establish 
the  rules  on  conducting  the  laboratory  testing  and  direct  emissions  measurements, 
adaptation  of  the  penalty  factor,  accreditation  of  verifiers,  adaptation  of  the  penalty 
factor, and modalities for the payment of penalties. It is of particular importance that 
the  Commission  carry  out  appropriate  consultations  during  its  preparatory  work, 
including at expert level, and that those consultations be conducted in accordance with 
the principles laid down in the Interinstitutional Agreement on Better Law-Making of 
13  April  2016.  In  particular,  to  ensure  equal  participation  in  the  preparation  of 
delegated acts, the European Parliament and the Council receive all documents at the 
same time as Member States’ experts, and their experts systematically have access to 
meetings of Commission expert groups dealing with the preparation of delegated acts. 

(41) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council27. When establishing by means of implementing acts the 
templates  for  standardised  monitoring  plans,  including  the  technical  rules  for  their 
uniform  application,  the  Commission  should  take  into  account  the  possibility  of 
reusing information and data collected for the purpose of Regulation (EU) 2015/757. 

(42)  Given the international dimension of the maritime sector, a global approach to limiting 
the  greenhouse  gas  intensity  of  the  energy  used  by  ships  is  preferable  as  it  could  be 
regarded as more effective due to its broader scope. In this context, and with a view to 
facilitating  the  development  of  international  rules  within  the  International  Maritime 
Organisation  (IMO),  the  Commission  should  share  relevant  information  on  the 
implementation  of  this  Regulation  with  the  IMO  and  other  relevant  international 
bodies and relevant submissions should be made to the IMO. Where an agreement on 
a  global  aproach  is  reached  on  matters  of  relevance  to  this  Regulation,  the 
Commission  should  review  the  present  Regulation  with  a  view  to  aligning  it,  where 
appropriate, with the international rules. 

(43)  The  uptake  of  renewable  and  low-carbon  fuels  and  substitute  sources  of  energy  by 
ships  arriving  at,  within  or  departing  from  ports  under  the  jurisdiction  of  a  Member 
State  across  the  Union,  is  not  an  objective  that  can  be  sufficiently  achieved  by  the 
Member  States  without  risking  to  introduce  barriers  to  the  internal  market  and 
distortions  of  competition  between  ports  and  between  maritime  operators.  This 
objective  can  be  better  achieved  by  introducing  uniform  rules  at  Union  level  that 
create economic incentives for maritime operators to continue operating unimpededly 

27 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

9 

  EN 

 
                                                 
while meeting obligations on the use of renewable and low-carbon fuels. Accordingly, 
the Union may adopt measures, in accordance with the principle of subsidiarity as set 
out in Article 5 of the Treaty on European Union. In accordance with the principle of 
proportionality as set out in that Article, this Regulation does not  go beyond what is 
necessary in order to achieve that objective, 

HAVE ADOPTED THIS REGULATION: 

CHAPTER I 

GENERAL PROVISIONS 

Article 1 

Objective and purpose 

This Regulation lays down uniform rules imposing: 

(a)  the  limit  on  the  greenhouse  gas  (‘GHG’)  intensity  of  energy  used  on-board  by  a  ship 
arriving at,  staying within or departing from ports under the jurisdiction  of a Member State 
and 

(b)  the  obligation  to  use  on-shore  power  supply  or  zero-emission  technology  in  ports  under 
the jurisdiction of a Member State,  

in order to increase consistent use of renewable and low-carbon fuels and substitute sources of 
energy  across  the  Union,  while  ensuring  the  smooth  operation  of  maritime  traffic  and 
avoiding distortions in the internal market.  

Article 2 

Scope 

This Regulation applies to all ships above a gross tonnage of 5000, regardless of their flag in 
respect to: 

(a) the energy used during their stay within a port of call under the jurisdiction of a Member 
State,  

(b) the entirety of the energy used on voyages from a port of call under the  jurisdiction of a 
Member State to a port of call under the jurisdiction of a Member State, and 

(c) a half of the energy used on voyages departing from or arriving to a port of call under the 
jurisdiction of a Member State, where the last or the next port of call is under the jurisdiction 
of a third country. 

This Regulation does not apply to warships, naval auxiliaries, fish-catching or fish-processing 
ships,  wooden  ships  of  a  primitive  build,  ships  not  propelled  by  mechanical  means,  or 
government ships used for non-commercial purposes. 

Article 3 

Definitions 

For the purposes of this Regulation, the following definitions apply:  

(a) 

‘greenhouse  gas  emissions’  means  the  release  of  carbon  dioxide  (CO2),  methane 
(CH4) and nitrous oxides (N2O) into the atmosphere; 

EN 

10 

  EN 

 
(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

(m) 

(n) 

(o) 

(p) 

(q) 

(r) 

‘biofuels’  means  biofuels  as  defined  in  Article  2,  point  (33),  of  Directive  (EU) 
2018/2001; 

‘biogas’  means  biogas  as  defined  in  Article  2,  point  (28),  of  Directive  (EU) 
2018/2001; 

‘recycled  carbon  fuels’  means  recycled  carbon  fuels  as  defined  in  Article  2,  point 
(35), of Directive (EU) 2018/2001; 

‘renewable  fuels  of  non-biological  origin’  means  renewable  fuels  of  non-biological 
origin as defined in  Article 2, point (36), of Directive (EU) 2018/2001; 

‘food and feed crops’ means food and feed crops as defined in Article 2, point (40), 
of Directive (EU) 2018/2001; 

‘zero-emission technology’ means a technology fulfilling the requirements of Annex 
III  that  does  not  imply  the  release  of  the  following  greenhouse  gases  and  air 
pollutants  into  the  atmosphere  by  ships:  carbon  dioxide  (CO2),  methane  (CH4), 
nitrous  oxides  (N2O),  sulphur  oxides  (SOx),  nitrogen  oxides  (NOx)  and  particulate 
matter (PM); 

‘substitute sources of energy’ means renewable  wind or solar energy  generated on-
board or electricity supplied from on-shore power supply; 

‘port of call’ means a port of call as defined in Article 3, poin (b) of Regulation (EU) 
2015/757; 

‘voyage’  means  voyage  as  defined  in  Article  3,  point  (c)  of  Regulation  (EU) 
2015/757; 

‘company’  means  company  as  defined  in  Article  3,  point  (d)  of  Regulation  (EU) 
2015/757; 

‘gross tonnage’ (GT) means GT as defined in Article 3, point (e) of Regulation (EU) 
2015/757; 

‘ship  at  berth’  means  ship  at  berth  as  defined  in  Article  3,  point  (n)  of  Regulation 
(EU) 2015/757; 

‘energy use on-board’ means the amount of energy, expressed in mega joules (MJ), 
used by a ship for propulsion and for the operation of any on-board equipment, at sea 
or at berth; 

‘greenhouse  gas  intensity  of  the  energy  used  on-board’  means  the  amount  of 
greenhouse  gas  emissions,  expressed  in  grams  of  CO2  equivalent  established  on  a 
well-to-wake basis, per MJ of energy used on-board; 

‘well-to-wake’ means a method for calculating emissions that takes into account the 
greenhouse  gas  impact  of  energy  production,  transport,  distribution  and  use  on-
board, including during combustion; 

‘emission factor’ means the average emission rate of a greenhouse gas relative to the 
activity  data  of  a  source  stream,  assuming  complete  oxidation  for  combustion  and 
complete conversion for all other chemical reactions; 

‘on-shore power supply’ means the system to supply electricity to ships at berth, at 
low  or  high  voltage,  alternate  or  direct  current,  including  ship  side  and  shore  side 
installations,  when  feeding  directly  the  ship  main  distribution  switchboard  for 
powering hotel, service workloads or charging secondary batteries; 

EN 

11 

  EN 

 
(s) 

(t) 

(u) 

(v) 

(w) 

(x) 

(y) 

(z) 

(aa) 

(bb) 

(cc) 

(dd) 

(ee) 

‘verifier’ means a legal entity carrying out verification activities, which is accredited 
by a national accreditation body pursuant to Regulation (EC) No 765/2008 and this 
Regulation;  

‘reporting  period’  means  reporting  period  as  defined  in  Article  3,  point  (m)  of 
Regulation (EU) 2015/757; 

‘FuelEU certificate of compliance’ means a certificate specific to a ship, issued to a 
company  by  a  verifier,  which  confirms  that  that  ship  has  complied  with  this  
Regulation for a specific reporting period; 

‘passenger ship’ means a ship that carries more than 12 passengers, including cruise 
ships,  high  speed  passenger  crafts,  and  ships  with  facilities  to  enable  road  or  rail 
vehicles to roll on and roll off the vessel; 

‘containership’  means  a  ship  designed  exclusively  for  the  carriage  of  containers  in 
holds and on deck;  

‘non-compliant port call’ means a port call of during which the ship does not comply 
with  the  requirement  of  Article  5(1),  and  none  of  the  exceptions  provided  for  in 
Article 5(3) apply; 

‘least  favourable  pathway’  means  the  most  carbon-intensive  production  pathway 
used for any given fuel; 

‘CO2 equivalent’ means the metric measure used to compute the emissions from CO2, 
CH4 and N2Oon the basis of their global-warming potential, by converting amounts 
of  CH4  and  N2O  to  the  equivalent  amount  of  carbon  dioxide  with  the  same  global 
warming potential; 

‘compliance balance’ means the measure of a ship’s over- or under-compliance with 
regards  to  the  limits  to  the  yearly  average  greenhouse  gas  intensity  of  the  energy 
used on-board by a ship, which is calculated in accordance with Annex V.  

‘compliance surplus’ means a compliance balance with a positive value.  

‘compliance deficit’ means a compliance balance with a negative value; 

‘total  pool  compliance  balance’  means  the  sum  of  the  compliance  balances  of  all 
ships included in the pool. 

‘managing body of the port’ means any public or private body as defined in Article 
2(5) of Regulation (EU) 2017/352 of the European Parliament and of the Council28. 

CHAPTER II 

REQUIREMENTS ON ENERGY USED ON-BOARD BY SHIPS 

Greenhouse gas intensity limit of energy used on-board by a ship 

Article 4 

28 

Regulation  (EU) 2017/352  of  the  European Parliament  and  of  the  Council  of 15 February 2017 
establishing  a  framework  for  the  provision  of  port  services  and  common  rules  on  the  financial 
transparency of ports (OJ L 57, 3.3.2017, p. 1). 

EN 

12 

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1. 

2. 

3. 

4. 

1. 

The  yearly average greenhouse gas intensity of the energy used on-board by a ship 
during a reporting period shall not exceed the limit set out in paragraph 2.  

The  limit  referred  to  in  paragraph  1  shall  be  calculated  by  reducing  the  reference 
value of [X grams of CO2 equivalent per MJ]* by the following percentage:  

– 

– 

– 

– 

– 

– 

-2% from 1 January 2025; 

-6% from 1 January 2030; 

-13% from 1 January 2035; 

-26% from 1 January 2040; 

-59% from 1 January 2045; 

-75% from 1 January 2050. 

[Asterix: The reference value, which calculation will be carried out at a later stage 
of  the  legislative  procedure,  corresponds  to  the  fleet  average  greenhouse  gas 
intensity of the energy used on-board by ships in 2020 determined on the basis data 
monitored and reported in the framework of Regulation (EU) 2015/757 and using the 
methodology and default values laid down in Annex I to that Regulation.] 

The  greenhouse  gas  intensity  of  the  energy  used  on-board  by  a  ship  shall  be 
calculated as the amount of greenhouse gas emissions per unit of energy according to 
the methodology specified in Annex I. 

The Commission is empowered to adopt delegated acts in accordance with Article 26 
to  amend Annex  II in  order to  include the well-to-wake emission  factors related to 
any  new  sources  of  energy  or  to  adapt  the  existing  emission  factors  to  ensure 
consistency with future international standards or the legislation of the Union in the 
field of energy.  

Article 5 

Additional zero-emission requirements of energy used at berth 

From  1  January  2030,  a  ship  at  berth  in  a  port  of  call  under  the  jurisdiction  of  a 
Member State shall connect to on-shore power supply and use it for all energy needs 
while at berth. 

2. 

Paragraph 1 shall apply to: 

(a) 

containerships;  

(b)  passenger ships. 

3. 

Paragraph 1 shall not apply to ships: 

(a) 

that  are  at  berth  for  less  than  two  hours,  calculated  on  the  basis  of  hour  of 
departure and arrival monitored in accordance with Article 14; 

(b) 

that use zero-emission technologies, as specified in Annex III; 

(c) 

(d) 

that have to make an unscheduled port call for reasons of safety or saving life 
at sea; 

that  are  unable  to  connect  to  on-shore  power  supply  due  to  unavailable 
connection points in a port; 

EN 

13 

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(e) 

that  are  unable  to  connect  to  on-shore  power  supply  because  the  shore 
installation  at  the  port  is  not  compatible  with  the  on-board  on-shore  power 
equipment;  

(f)  which,  for  a  limited  period  of  time,  require  the  use  of  on-board  energy 
generation, under emergency situations representing immediate risk to life, the 
ship, the environment or for other reasons of force majeure.  

The Commission is empowered to adopt delegated acts in accordance with Article 26 
to  amend  Annex  III  in  order  to  insert  references  to  new  technologies  in  the  list  of 
applicable  zero-emission  technologies  or  criteria  for  their  use,  where  these  new 
technologies are found equivalent to the technologies listed in that Annex in the light 
of scientific and technical progress. 

The managing body of the port of call shall determine whether the exceptions set in 
paragraph 3  apply and issue or refuse to issue the certificate in accordance with the 
requirements set out in Annex IV. 

From 1 January 2035, the exceptions listed in  paragraph 3, points (d) and (e), may 
not  be  applied  to  a  given  ship,  in  total,  more  than  five  times  during  one  reporting 
year.  A  port  call  shall  not  be  counted  for  the  purpose  of  compliance  with  this 
provision where the company demonstrates that it could not have reasonably known 
that the ship will be unable to connect for reasons referred to in paragraph 3, points 
(d) and (e). 

Emergency situations resulting in the need to use on-board generators, referred to in 
paragraph 3, point (f), shall be documented and reported by the ship to the managing 
body of the port. 

CHAPTER III 

COMMON PRINCIPLES AND CERTIFICATION 

Article 6 

Common principles for monitoring and reporting 

In accordance with Articles 7 to 9, companies shall, for each of their ships, monitor 
and  report  on  the  relevant  data  during  a  reporting  period.  They  shall  carry  out  that 
monitoring  and  reporting  within  all  ports  under  the  jurisdiction  of  a  Member  State 
and for any voyages to or from a port under the jurisdiction of a Member State. 

Monitoring and reporting shall be complete and cover the energy used on-board by 
ships,  while  the  ships  are  at  sea  as  well  as  at  berth.  Companies  shall  apply 
appropriate measures to prevent any data gaps within the reporting period. 

Monitoring and reporting shall be consistent and comparable over time. To that end, 
companies  shall  use  the  same  monitoring  methodologies  and  data  sets  subject  to 
modifications assessed by the verifier. Companies shall enable reasonable assurance 
of the integrity of the data to be monitored and reported. 

Companies  shall  obtain,  record,  compile,  analyse  and  document  monitoring  data, 
including assumptions, references, emission factors and activity data, in a transparent 
and accurate manner, so that the verifier can  determine the greenhouse gas intensity 
of the energy used on-board by ships. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

4. 

EN 

14 

  EN 

 
5. 

1. 

2. 

3. 

In undertaking the monitoring and reporting activities set out in Articles 7 to 9 and 
14 of this Regulation, information and data collected for the purpose of Regulation 
(EU) 2015/757 shall be used where appropriate. 

Article 7 

Monitoring plan 

By  31  August  2024,  companies  shall  submit  to  the  verifiers  a  monitoring  plan  for 
each of their ships indicating the method chosen from among those set out in Annex I 
to monitor and report the amount, type and emission factor of energy used on-board 
by ships and other relevant information. 

For ships falling under the scope of this Regulation for the first time after 31 August 
2024, companies shall submit a monitoring plan to the verifier without undue delay 
and  no  later  than  two  months  after  each  ship’s  first  call  in  a  port  under  the 
jurisdiction of a Member State. 

The monitoring plan shall consist of a complete and transparent documentation and 
shall contain at least the following elements: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

the  identification  and  type  of  the  ship,  including  its  name,  its  IMO 
identification  number,  its  port  of  registry  or  home  port,  and  the  name  of  the 
ship-owner; 

the  name  of  the  company  and  the  address,  telephone  and  e-mail  details  of  a 
contact person; 

a  description  of  the  energy  conversion  systems  installed  on-board,  and  the 
related power capacity expressed in megawatt (MW); 

a  description  that  the  ship  has  installed  and  certified  equipment  to  allow 
connection  to  onshore  power  supply,  at  a  specified  voltage  and  frequency, 
including  the  gear  specified  in  IEC/IEEE  80005-1  (High  Voltage)  and 
IEC/IEEE  80005-3  (Low  Voltage)  or  is  equipped  with  substitute  sources  of 
energy or a zero-emission technology as specified in Annex III; 

a description of the intended source(s) of energy to be used on-board while in 
navigation  and  at  berth  to  comply  with  the  requirements  set  out  in  Articles  4 
and 5; 

a description of the procedures for monitoring the fuel consumption of the ship 
as  well  as  the  energy  provided  by  substitute  sources  of  energy  or  a  zero-
emission technology as specified in Annex III; 

(g)  well-to-wake emission factors referred to in Annex II; 

(h) 

(i) 

a description of the procedures used to monitor the completeness of the list of 
voyages; 

a description of the procedures used for determining activity data per voyage, 
including  the  procedures,  responsibilities,  formulae  and  data  sources  for 
determining and recording the time spent at sea between the port of departure 
and the port of arrival and the time spent at berth; 

(j) 

a description of the procedures, systems and responsibilities used to update any 
of the data contained in the monitoring plan over the reporting period; 

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(k) 

a description of the method to be used to determine surrogate data for closing 
data gaps; 

(l) 

a revision record sheet to record all the details of the revision history. 

Companies  shall  use  standardised  monitoring  plans  based  on  templates.  The 
Commission  shall,  by  means  of  implementing  acts,  determine  those  templates, 
including the technical rules for their uniform application. Those implementing acts 
shall be adopted in accordance with the examination procedure referred to in Article 
27(3). 

Article 8 

Modifications to the monitoring plan 

Companies shall check regularly, and at least annually, whether a ship’s monitoring 
plan  reflects  the  nature  and  functioning  of  the  ship  and  whether  any  of  the  data  it 
contains can be improved. 

4. 

1. 

2. 

Companies shall modify the monitoring plan in any of the following situations: 

(a)  where a change of company occurs; 

(b)  where  new  energy  conversion  systems,  new  types  of  energy,  including 
substitute  sources  of  energy  or  a  zero-emission  technology  as  specified  in 
Annex III are in use; 

(c)  where a change in availability of data, due to the use of new types of measuring 
equipment,  new  sampling  methods  or  analysis  methods,  or  for  other  reasons, 
may affect the accuracy of the data collected; 

(d)  data  resulting  from  the  monitoring  method  applied  has  been  found  to  be 

incorrect; 

(e)  where any part of the monitoring plan is identified as not being in conformity 
with  the  requirements  of  this  Regulation  and  the  company  is  required  by  the 
verifier to revise it. 

Companies  shall  notify  to  the  verifiers  without  undue  delay  any  proposals  for 
modification of the monitoring plan. 

Modifications of the monitoring plan referred to  in  paragraph 2, points (b), (c)  and 
(d)  of  this  Article  shall  be  subject  to  assessment  by  the  verifier.  Following  the 
assessment,  the  verifier  shall  notify  the  company  concerned  whether  those 
modifications are in conformity with Article 6. 

3. 

4. 

Article 9 

Certification of biofuels, biogas, renewable liquid and gaseous transport fuels of non-
biological origin and recycled carbon fuels 

1. 

Where biofuels, biogas, renewable fuels of non-biological origin and recycled carbon 
fuels,  as  defined  in  Directive  (EU)  2018/2001,  are  to  be  taken  into  account  for  the 
purposes referred to in Articles 4(1) of this Regulation, the following rules apply:  

(a) 

greenhouse  gas  emission  factors  of  biofuels  and  biogas  that  comply  with  the 
sustainability  and  greenhouse  gas  saving  criteria  set  out  in  Article  29  of 

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Directive (EU) 2018/2001 shall be determined according to the methodologies 
set out in that Directive; 

(b)  greenhouse  gas  emissions  factors  of  renewable  fuels  of  non-biological  origin 
and recycled carbon fuel that comply with the greenhouse gas emission savings 
thresholds  set  out  in  Article  27(3)  of  Directive  (EU)  2018/2001  shall  be 
determined according to the methodologies set out in that Directive;  

(c) 

(d) 

biofuels and biogas that do not comply with point (a) or that are produced from 
food and feed crops shall be considered to  have the same emission factors as 
the least favourable fossil fuel pathway for this type of fuel; 

renewable fuels of non-biological origin and recycled carbon fuels that do not 
comply with point (b) shall be considered to have the same emission factors as 
the least favourable fossil fuel pathway for this type of fuels. 

Companies  shall  provide  accurate  and  reliable  data  on  the  GHG  emission  intensity 
and  the  sustainability  characteristics  of  biofuels,  biogas,  renewable  fuels  of  non-
biological origin and recycled carbon fuel, verified by a scheme that is recognised by 
the  Commission  in  accordance  with  Article  30(5)  and  (6)  of  the  Directive  (EU) 
2018/2001. 

Companies shall be entitled to divert from the established default values for the tank-
to-wake  emission  factors  provided  that  actual  values  are  certified  by  means  of 
laboratory testing or direct emissions measurements. The Commission is empowered 
to  adopt  delegated  acts  in  accordance  with  Article  26,  in  order  to  supplement  this 
Regulation by establishing the rules on conducting the laboratory testing and direct 
emissions measurements. 

CHAPTER IV 

VERIFICATION AND ACCREDITATION 

Article 10 

Verification activities 

The verifier shall assess the conformity of the monitoring plan with the requirements 
laid  down  in  Articles  6  to 9.  Where  the  verifier’s  assessment  identifies  non-
conformities  with  those  requirements,  the  company  concerned  shall  revise  its 
monitoring plan accordingly and submit the revised plan for a final assessment by the 
verifier before the reporting period starts.  The company concerned shall agree with 
the verifier on the timeframe necessary to introduce those revisions. That timeframe 
shall in any event not extend beyond the beginning of the reporting period. 

The  verifier  shall  assess  the  conformity  of  the  information  reported  with  the 
requirements laid down in Articles 6 to 9 and Annexes I, II and III before performing 
the operations set out in Article 15(2). 

Where the verification assessment identifies incorrect statements or non-conformities 
with  this  Regulation,  the  verifier  shall  inform  the  company  concerned  thereof  in  a 
timely  manner.  That  company  shall  then  amend  the  incorrect  statements  or  non-
conformities so as to enable the verification process to be completed in time. 

2. 

3. 

1. 

2. 

3. 

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Article 11 

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1. 

2. 

General obligations and principles for the verifiers 

The verifier shall be independent  from  the  company  or  from the operator of a ship 
and shall carry out the activities required under this Regulation in the public interest. 
For that purpose, neither the verifier nor any part of the same legal entity shall be a 
company or ship operator, the owner of a company, or be owned by them, nor shall 
the verifier have relations with  the company that could  affect  its independence  and 
impartiality.  

The  verifier  shall  assess  the  reliability,  credibility  and  accuracy  of  the  data  and 
information relating to the amount, type and emission factor of the energy used on-
board by ships, in particular: 

(a) 

the attribution of fuel consumption and the use of substitute sources of energy 
to voyages; 

(b) 

the reported fuel consumption data and related measurements and calculations; 

(c) 

(d) 

the choice and the employment of emission factors; 

the  use  of  on-shore  power  supply  or  the  presence  of  exceptions  certified  in 
accordance with Article 5(5). 

3. 

The  assessment  referred  to  in  paragraph  2  shall  be  based  on  the  following 
considerations: 

(a) 

(b) 

the  reported  data  are  coherent  in  relation  to  estimated  data  that  are  based  on 
ship tracking data and characteristics such as the installed engine power; 

the reported data are free of inconsistencies, in particular when comparing the 
total  volume  of  fuel  purchased  annually  by  each  ship  and  the  aggregate  fuel 
consumption during voyages; 

(c) 

the collection of the data has been carried out in accordance with the applicable 
rules; and 

(d) 

the relevant records of the ship are complete and consistent. 

Article 12 

Verification procedures 

1. 

2. 

3. 

4. 

The  verifier  shall  identify  potential  risks  related  to  the  monitoring  and  reporting 
process by comparing reported amount, type and emission factor of the energy used 
on-board by ships with estimated data based on ship tracking data and characteristics 
such  as  the  installed  engine  power.  Where  significant  deviations  are  found,  the 
verifier shall carry out further analyses. 

The verifier shall identify potential risks related to the different calculation steps by 
reviewing all data sources and methodologies used by the company. 

The verifier shall take into consideration any effective risk control methods applied 
by  the  company  concerned  to  reduce  levels  of  uncertainty  associated  with  the 
accuracy specific to the monitoring methods used. 

The  company  concerned  shall  provide  the  verifier  with  any  additional  information 
that  enables  it  to  carry  out  the  verification  procedures.  The  verifier  may  conduct 
checks  during  the  verification  process  to  determine  the  reliability  of  reported  data 
and information. 

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Article 13 

Accreditation of verifiers 

1. 

2. 

3. 

Verifiers  shall  be  accredited  for  activities  under  the  scope  of  this  Regulation  by  a 
national accreditation body pursuant to Regulation (EC) No 765/2008. 

Where no specific provisions concerning the accreditation of verifiers are laid down 
in  this  Regulation,  the  relevant  provisions  of  Regulation  (EC)  No  765/2008  shall 
apply. 

The  Commission  is  empowered  to  adopt  delegated  acts  in  accordance  with  Article 
26,  in  order  to  supplement  this  Regulation  by  establishing  further  methods  and 
criteria  of  accreditation  of  verifiers.  The  methods  specified  in  those  delegated  acts 
shall  be  based  on  the  principles  for  verification  provided  for  in  Articles  10  and  11 
and on relevant internationally accepted standards. 

CHAPTER V 

RECORDING, VERIFICATION, REPORTING AND ASSESMENT OF 
COMPLIANCE 

Article 14 

Monitoring and recording 

1. 

Based on the monitoring plan referred to in Article 7, and following the assessment 
of  that  plan  by  the  verifier,  companies  shall  record,  for  each  ship  arriving  in  or 
departing from, and for each voyage to or from a port of call under the jurisdiction of 
a Member State, the following information: 

(a) 

(b) 

(c) 

(d) 

port  of  departure  and  port  of  arrival  including  the  date  and  hour  of  departure 
and arrival and time spent at berth; 

for each ship that the requirement of Article 5(1) applies, the connection to and 
use of on-shore power or the existence of any of the exceptions listed in Article 
5(3); 

the amount of each type of fuel consumed at berth and at sea; 

the well-to-wake emission factors for each type of fuel consumed at berth and 
at  sea,  broken  down  by  well-to-tank,  tank-to-wake  and  fugitive  emissions, 
covering all relevant greenhouse gases; 

(e) 

the amount of each type of substitute source of energy consumed at berth and 
at sea. 

2. 

3. 

Companies  shall  record  the  information  and  data  listed  in  paragraph  1  on  annual 
basis  in  a  transparent  manner,  that  enables  the  verification  of  compliance  with  this 
Regulation by the verifier. 

By  30  March  of  each  year,  companies  shall  provide  to  the  verifier  the  information 
referred to in paragraph 1. 

Article 15 

Verification and calculation 

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1. 

Following the verification laid down in Articles 10 to 12, the verifier shall assess the 
quality, completeness  and accuracy of the information provided by the company in 
accordance with Article 14(3). 

2. 

On the basis of the information verified according to paragraph 1, the verifier shall: 

(a) 

(b) 

(c) 

calculate,  using  the  method  specified  in  Annex  I,  the  yearly  average 
greenhouse gas intensity of the energy used on-board by the ship concerned; 

calculate,  using  the  formula  specified  in  Annex  V,  the  ship’s  compliance 
balance; 

calculate  the  number  of  non-compliant  port  calls  in  the  previous  reporting 
period including the time spent at berth for each non-compliant port call. 

(d) 

calculate the amount of the penalties referred to in Article 20(1) and (2). 

3. 

The verifier shall notify to the company the information referred to in paragraph 2. 

1. 

2. 

3. 

1. 

2. 

Article 16 

Compliance database and reporting 

The  Commission  shall  develop,  ensure  functioning  and  update  an  electronic 
compliance  database  for  the  monitoring  of  compliance  with  Articles  4  and  5.  The 
compliance database shall be used to keep a record of the compliance balance of the 
ships and the use of the flexibility mechanisms set out in Articles 17 and 18. It shall 
be  accessible  to  the  companies,  the  verifiers,  the  competent  authorities  and  the 
Commission.  

The Commission shall, by means of implementing acts, lay down the rules for access 
rights  and  the  functional  and  technical  specifications  of  the  compliance  database. 
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 27(3). 

By 30 April of each  year, the company shall record in the compliance database for 
each  of  its  ships  the  information  referred  to  in  Article  15(2),  as  ascertained  by  the 
verifier, together with information allowing to identify the ship, the company, as well 
as the identity of the verifier that carried out the assessment. 

Article 17 

Banking and borrowing of compliance surplus between reporting periods 

Where the ship has a compliance surplus for the reporting period, the company may 
bank it to the same ship’s compliance balance for the following reporting period. The 
company  shall  record  the  banking  of  the  compliance  surplus  to  the  following 
reporting period in  the compliance database subject  to  approval  by its verifier. The 
company may no longer bank the compliance surplus once the FuelEU certificate of 
compliance has been issued. 

Where the ship has a compliance deficit for the reporting period, the company may 
borrow  an  advance  compliance  surplus  of  the  corresponding  amount  from  the 
following  reporting  period.  The  advance  compliance  surplus  shall  be  added  to  the 
ship’s balance in the reporting period and subtracted from the same ship’s balance in 
the  following  reporting  period.  The  amount  to  be  subtracted  in  the  following 

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reporting period shall be equal to the advance compliance surplus multiplied by 1.1. 
The advance compliance surplus may not be borrowed: 

(a) 

for  the  amount  exceeding  by  more  than  2%  the  limit  set  out  in  Article  4(2), 
multiplied by the energy consumption of the ship calculated in accordance with 
Annex I;  

(b) 

for two consecutive reporting periods. 

By 30 April of the year following the reporting period, the company shall record the 
advance  compliance  surplus,  following  approval  by  its  verifier,  in  the  compliance 
database. 

Article 18 

Pooling of compliance 

The  compliance  balances  of  two  or  more  ships,  which  are  verified  by  the  same 
verifier, may be pooled for the purposes of fulfilling the requirements of Article 4. A 
ship’s  compliance  balance  may  not  be  included  in  more  than  one  pool  in  the  same 
reporting period.  

By 30 March of the year following the reporting period, the company shall notify to 
the verifier the intention of including the ship’s compliance balance in a pool for the 
immediately preceding reporting period. In the case where the ships participating in 
the pool are controlled by two or more companies, the companies shall make a joint 
notification to the verifier. 

By 30 April of the year following the reporting period, the pool shall be recorded in 
the  compliance  database  by  the  verifier.  The  composition  of  the  pool  shall  not 
change after that date. 

In case of pooled compliance under paragraph 1 of this Article, and for the purposes 
of  Article  15(2)(b),  the  company  may  decide  how  to  allocate  the  total  compliance 
balance of the pool to each individual ship, provided that the total pool compliance 
balance is respected. In case where the ships participating in the pool are controlled 
by  two  or  more  companies,  the  total  compliance  balance  of  the  pool  shall  be 
allocated in accordance with the method specified in the joint notification.  

If  the  pool  average  compliance  balance  results  in  the  compliance  surplus  for  an 
individual ship, Article 17(1) applies. 

Article 17(2) does not apply to a ship participating in the pool. 

The  company  may  no  longer  include  the  ship’s  compliance  balance  in  a  pool  once 
the FuelEU certificate of compliance has been issued.  

Article 19 

FuelEU certificate of compliance 

By  30  June  of  the  year  following  the  reporting  period,  the  verifier  shall  issue  a 
FuelEU certificate of compliance for the ship concerned, provided that the ship does 
not  have a compliance deficit, after possible application of Articles 17 and 18, and 
does not have non-compliant port calls. 

3. 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

The FuelEU certificate of compliance shall include the following information: 

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(a) 

identity  of  the  ship  (name,  IMO  identification  number  and  port  of  registry  or 
home port); 

(b)  name, address and principal place of business of the ship-owner; 

(c) 

identity of the verifier; 

(d)  date of issue of this certificate, its period of validity and the reporting period it 

refers to. 

The FuelEU certificate of compliance shall be valid for the period of 18 months after 
the end of the reporting period. 

The  verifier  shall  inform  the  Commission  and  the  flag  State,  without  delay,  of  the 
issuance of any FuelEU certificate of compliance. 

The Commission shall adopt implementing acts establishing models for  the FuelEU 
certificate of compliance, including electronic models. Those implementing acts shall 
be adopted in accordance with the advisory procedure referred to in Article 27(2). 

Article 20 

Penalties 

Where on 1 May of the year following the reporting period the ship has a compliance 
deficit, the  company shall pay  a penalty. The verifier shall calculate the  amount of 
the penalty on the basis of the formula specified Annex V. 

The company shall pay a penalty for each non-compliant port call. The verifier shall 
calculate  the  amount  of  the  penalty  by  multiplying  the  amount  of  EUR  250  by 
megawatts of power installed on-board and by the number of completed hours spent 
at berth. 

Notwithstanding  Article  19(1),  the  verifier  shall  issue  a  FuelEU  certificate  of 
compliance once the penalties referred to in paragraphs 1 and 2 of this Article have 
been paid. The actions referred to in this Article as well as the proof of the financial 
payments in accordance with Article 21 shall be recorded in the FuelEU certificate of 
compliance. 

The Commission is empowered to adopt delegated acts in accordance with Article 26 
to  amend  Annex  V  in  order  to  adapt  the  formula  referred  to  in  paragraph  1  of  this 
Article, and to  amend the amount of the fixed penalty laid down in  paragraph 2 of 
this Article, taking into account the developments in the cost of energy.  

3. 

4. 

5. 

1. 

2. 

3. 

4. 

Article 21 

Allocation of penalties to support renewable and low-carbon fuels in the maritime sector 

1. 

The  penalties  referred  to  in  Article  20(1)  and  20(2)  shall  be  allocated  to  support 
common projects  aimed at the rapid deployment of renewable and low carbon fuels 
in  the  maritime  sector.  Projects  financed  by  the  funds  collected  from  the  penalties 
shall stimulate the production of greater quantities of renewable and low carbon fuels 
for the maritime sector, facilitate the construction of appropriate bunkering facilities 
or  electric  connection  ports  in  ports,  and  support  the  development,  testing  and 
deployment  of  the  most  innovative  European  technologies  in  the  fleet  to  achieve 
significant emission reductions. 

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2. 

3. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

The revenues generated from penalties referred to in paragraph 1 shall be allocated to 
the the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC. These 
revenues shall constitute external assigned revenue in accordance with Article 21(5) 
of the Financial Regulation, and shall be implemented in  accordance with the rules 
applicable to the Innovation Fund. 

The Commission is empowered to adopt delegated acts in accordance with Article 26 
to  supplement  this  Regulation  concerning  the  modalities  for  the  payment  of  the 
penalties referred to in Article 20(1) and 20(2). 

Article 22 

Obligation to carry a valid FuelEU certificate of compliance on-board  

The ships calling at a port under the jurisdiction of a Member State shall carry on-
board a valid FuelEU certificate of compliance.  

The Fuel  EU certificate  of compliance issued for the ship  concerned in  accordance 
with Article 19 shall constitute evidence of compliance with this Regulation. 

Article 23 

Enforcement 

Member States shall lay down the rules on sanctions applicable to infringements of 
this  Regulation  and  shall  take  all  measures  necessary  to  ensure  that  they  are 
implemented.  The  sanctions  provided  for  must  be  effective,  proportionate  and 
dissuasive.  Member  States  shall  notify  those  provisions  to  the  Commission  by 
[dd/mm/20xx],  and  shall  notify  to  the  Commission  without  delay  any  subsequent 
amendments. 

Each  Member  State  shall  ensure  that  any  inspection  of  a  ship  in  a  port  under  its 
jurisdiction carried out in accordance with Directive 2009/16/EC includes checking 
that a valid FuelEU certificate of compliance is carried on board. 

Where a ship has failed to present a valid FuelEU certificate of compliance for two 
or more consecutive reporting periods and  where other enforcement  measures have 
failed to ensure compliance, the competent authority of the Member State of the port 
of  call  may,  after  giving  the  opportunity  to  the  company  concerned  to  submit  its 
observations, issue an expulsion order. The competent authority of the Member State 
shall notify the expulsion order to the Commission, the other Member States and the 
flag State concerned. Every Member State, with the exception of any Member State 
whose  flag  the  ship  is  flying,  shall  refuse  entry  of  the  ship  which  is  subject  to  the 
expulsion order into any of its ports until the company fulfils its obligations. Where 
the  ship  flies  the  flag  of  a  Member  State,  the  Member  State  concerned  shall,  after 
giving the opportunity to the company concerned to submit its observations, order a 
flag detention until the company fulfils its obligations. 

The fulfilment of those obligations shall be confirmed by the notification of a valid 
FuelEU  certificate  of  compliance  to  the  competent  national  authority  which  issued 
the  expulsion  order.  This  paragraph  shall  be  without  prejudice  to  the  provisions  of 
international law applicable in the case of ships in distress. 

Sanctions  against  a  specified  ship  by  any  Member  State  shall  be  notified  to  the 
Commission, to the other Member States and to the flag State concerned. 

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Article 24 

Right to review  

1. 

2. 

3. 

The  companies  shall  be  entitled  to  apply  for  a  review  of  the  calculations  and 
measures  addressed  to  them  by  the  verifier  under  this  Regulation,  including  the 
refusal to issue a FuelEU certificate of compliance pursuant to Article 19(1).  

The application for review shall be lodged, within one month of the notification of 
the  result  of  calculation  or  of  the  measure  by  the  verifier,  with  the  competent 
authority of the Member State in which the verifier has been accredited. The decision 
of the competent authority shall be subject to judicial review 

The decisions taken under this Regulation by the managing body of the port shall be 
subject to judicial review. 

Article 25 

Competent authorities 

Member  States  shall  designate  one  or  more  competent  authorities  as  responsible  for  the 
application  and  enforcement  of  this  Regulation  (‘competent  authorities’).  They  shall 
communicate their names and contact information to the Commission. The Commission shall 
publish on its website the list of competent authorities. 

CHAPTER VI  

DELEGATED AND IMPLEMENTING POWERS AND FINAL PROVISIONS 

Article 26 

Exercise of delegation 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The  power  to  adopt  delegated  acts  referred  to  in  Articles  4(6),  5(4),  9(3),  13(3), 
20(4), and 21(3) shall be conferred on the Commission for an indeterminate period of 
time from [date of entry into force of this Regulation]. 

The  delegation  of  power  referred  to  in  Articles  4(7),  5(4),  9(3),  13(3),  20(4),  and 
21(3) may be revoked at any time by the European Parliament or by the Council. A 
decision to  revoke shall put  an end to  the delegation of the power specified in  that 
decision. It shall take effect the day following the publication of the decision  in the 
Official Journal of the European Union or at a later date specified therein. It shall not 
affect the validity of any delegated acts already in force. 

Before adopting a delegated act, the Commission shall consult experts designated by 
the 
in  accordance  with 
each  Member  State 
Interinstitutional Agreement on Better Law-Making of 13 April 2016. 

the  principles 

laid  down 

in 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council. 

1. 

2. 

3. 

4. 

5. 

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6. 

1. 

2. 

3. 

1. 

A delegated act adopted pursuant to Articles 4(7), 5(4), 9(3), 13(3), 20(4), and 21(3) 
shall enter into force only if no objection has been expressed either by the European 
Parliament or by the Council within a period of two months of notification of that act 
to the European Parliament and the Council or if, before the expiry of that period, the 
European Parliament and the Council have both informed the Commission that they 
will not object. That period shall be extended by two months at the initiative of the 
European Parliament or of the Council. 

Article 27 

Committee procedure 

The Commission shall be assisted by the Committee on Safe Seas and the Prevention 
of  Pollution  from  ships  (COSS)  established  by  Regulation  (EC)  2099/2002  of  the 
European  Parliament  and  of  the  Council29.  That committee  shall  be  a  committee 
within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011  shall  apply.  Where  the  opinion  of  the  Committee  is  to  be  obtained  by 
written procedure, that procedure shall be terminated without result when, within the 
time-limit for delivery of the opinion, the chair of the committee so decides 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011  shall  apply.  Where  the  committee  delivers  no  opinion,  the  Commission 
shall not adopt the draft implementing act and the third subparagraph of Article 5(4) 
of Regulation (EU) No 182/2011 shall apply.  

Article 28 

Report and review 

The  Commission  shall  report  to  the  European  Parliament  and  the  Council,  by  1 
January 2030, the results of an evaluation on the functioning of this Regulation and 
the evolution of the technologies and market for renewable and low-carbon fuels in 
maritime  transport  and  its  impact  on  the  maritime  sector  in  the  Union.  The 
Commission shall consider possible amendments to: 

(a) 

the limit referred to in Article 4(2); 

(b) 

the ship types to which Article 5(1) applies; 

(c) 

the exceptions listed in Article 5(3). 

Article 29 

Amendments to Directive 2009/16/EC  

The following point shall be added to the list set out in Annex IV to Directive 2009/16/EC: 
‘51. The FuelEU certificate of compliance issued under Regulation (EU) xxxx on the use of 
renewable and low-carbon fuels in maritime transport’. 

29 

Regulation  (EC)  No  2099/2002  of  the  European  Parliament  and  of  the  Council  of  5  November  2002 
establishing  a  Committee  on  Safe  Seas  and  the  Prevention  of  Pollution  from  Ships  (COSS)  and 
amending  the  Regulations  on  maritime  safety  and  the  prevention  of  pollution  from  ships  (OJ  L  324, 
29.11.2002, p. 1). 

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Article 30 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. It shall apply from 1 January 2025. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

Contents 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 4 

Title of the proposal/initiative ...................................................................................... 4 

Policy area(s) concerned .............................................................................................. 4 

The proposal/initiative relates to: ................................................................................. 4 

Objective(s) .................................................................................................................. 4 

1.4.1.  General objective(s) ..................................................................................................... 4 

1.4.2.  Specific objective(s) ..................................................................................................... 4 

1.4.3.  Expected result(s) and impact ...................................................................................... 4 

1.4.4. 

Indicators of performance ............................................................................................ 5 

1.5. 

Grounds for the proposal/initiative .............................................................................. 5 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 5 

1.5.2.  Added value of Union involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from Union intervention which is additional to the value that would have been 
otherwise created by Member States alone. ................................................................. 5 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 6 

1.5.4.  Compatibility with the Multiannual Financial Framework and possible synergies 

with other appropriate instruments............................................................................... 6 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 6 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration and financial impact of the proposal/initiative ............................................. 8 

Management mode(s) planned ..................................................................................... 8 

MANAGEMENT MEASURES................................................................................... 9 

Monitoring and reporting rules .................................................................................... 9 

Management and control system(s) ............................................................................. 9 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed .......................................... 9 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 9 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 

costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure) .................................................................. 11 

2.3. 

3. 

Measures to prevent fraud and irregularities .............................................................. 11 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 12 

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3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 12 

3.2. 

Estimated financial impact of the proposal on appropriations ................................... 13 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 13 

3.2.2.  Estimated output funded with operational appropriations ......................................... 16 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 17 

3.2.4.  Compatibility with the current multiannual financial framework.............................. 19 

3.2.5.  Third-party contributions ........................................................................................... 19 

3.3. 

Estimated impact on revenue ..................................................................................... 20 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a Regulation of the European Parliament and the Council on the use of 
renewable and low-carbon fuels in maritime transport 

1.2. 

Policy area(s) concerned  

Mobility and Transport 

1.3. 

The proposal/initiative relates to:  

 a new action  

 a new action following a pilot project/preparatory action30  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4. 

Objective(s) 

1.4.1.  General objective(s) 

The general objective is to lay down rules to reduce the greenhouse gas intensity of 
energy used on-board by ships arriving at and within ports under the jurisdiction of a 
Member State, in  order to promote the coherent  development  and consistent use of 
renewable and low-carbon fuels (RLF) across the Union, without introducing barriers 
to the internal market. 

1.4.2. 

Specific objective(s) 

1)  Enhance  predictability  through  the  setting  of  a  clear  regulatory  environment 
concerning the use of RLF in maritime transport. 

2) Stimulate technology development. 

3)  Stimulate  production  on  a  larger  scale  of  RLF  with  sufficient  high  technology 
readiness level (TRLs) and reduce the price gap with current fuels and technologies. 

4) Create demand from ship operators to bunker RLF or connect to the electric grid 
while at berth. 

5) Avoid carbon leakage. 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

This Regulation is expected to increase the penetration of renewable and low carbon 
fuels  in  the  maritime  fuel  mix,  while  maintaining  the  level  playing  field  in  the 
maritime sector among ship operators and ports. 

This  Regulation  is  expected  to  lead  to  a  gradual  decarbonisation  of  the  maritime 
transport  sector  in  the  EU,  while  maintaining  high  levels  of  competitiveness  of  the 
industry and high levels of connectivity within, to and from the EU. 

30 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

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1.4.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

The effectiveness of the proposed Regulation, with respect to the specific objective 
no.  1,  will  be  determined  based  on  the  establishment  of  a  regulatory  framework, 
investment levels in RLF and the evolution of the penetration of RLF in the maritime 
fuel mix.  

The effectiveness of the proposed Regulation, with respect to the specific objective 
no. 2, will be determined based on the evolution of the share of zero-emissions fuels 
such as e-fuels, hydrogen, ammonia and electricity in the maritime fuel mix. 

The effectiveness of the proposed Regulation, with respect to the specific objective 
no. 3, will be determined based on the production levels of RLF, their availability in 
ports,  and  the  development  of  average  prices  and  price  differentials  with 
conventional fossil fuels.  

The effectiveness of the proposed Regulation, with respect to the specific objective 
no.  4,  will  be  determined  based  on  the  evolution  of  the  penetration  of  RLF  in  the 
maritime fuel mix and the number of ships and ports equipped with on-shore power 
supply capability and RLF distribution points.  

The effectiveness of the proposed Regulation, with respect to the specific objective 
no.  5,  will  be  determined  based  on  the  average  distance  of  last  journeys  of  vessel 
calling EU ports and monitoring of RLF certification.  

More  information  about  the  monitoring  and  evaluation  framework  can  be  found  in 
annex 7 of the Impact Assessment accompanying this initiative. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

Ship operators will be required to reduce the average greenhouse gas intensity of the 
energy used on board from  2025 (i.e. the amount of greenhouse gases produced  by 
unit of energy). The targets will become gradually stricter every 5 years until 2050. 

For the most polluting ship types (which, according to EU MRV data, are container 
and passenger ships), operators will be required to plug into on-shore power supply 
(OPS) or use alternative zero-emissions solutions when at berth from 1 January 2030. 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 

Reasons for action at European level (ex-ante) 

A level playing field for ship operators and shipping companies is critical to the well-
functioning of the EU market for maritime transport. The FuelEU Maritime initiative 
proposes  a  harmonised  regulatory  framework  in  the  EU  to  increase  the  share  of 
renewable  and  low-carbon  fuels  in  the  fuel  mix  of  international  maritime  transport 
without creating barriers to the single market. EU action will avoid the development 
of  a  potentially  incompatible  or  sub-optimal  patchwork  of  national  measures  with 
differing requirements and targets. 

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Expected generated Union added value (ex-post) 

An  increased  predictability  of  the  regulatory  framework  is  expected  to  facilitate 
invesments,    stimulate  technology  development  and  fuel  production  and  help  the 
sector  unlock  the  existing  chicken-and-egg  situation  between  renewable  and  low-
carbon fuels’ demand and supply. Clear and uniform obligations on the demand-side 
is necessary to mitigate the risk of carbon leakage, which maritime transport is prone 
to due to its international nature and the possibility to bunker fuel outside the EU and 
carry out long journeys on a single tank. 

1.5.3.  Lessons learned from similar experiences in the past 

Under  existing  EU  legislation,  the  promotion  of  alternative  fules  for  maritime 
transport  has  been  covered  in  particular  by  the  Alternative  Fuels  Infrastructure 
Directive  and the Renewable Energy Directive.  However, these rules only apply to 
the  supply  and  distribution  of  fuels  and  not  to  their  use.  While  some  progress  has 
been made, the fuel mix in the maritime sector still remains 99 % of fossil origin. It 
is therefore necessary to establish specific requirements for the use of renewable low 
carbon fuels by ships to solve the existing “chicken and egg situation”. 

The  chosen  approach  learns  from  past  experience  by  establishing  clear  and 
harmonised  rules  at  EU  level  focussing  on  the  use  of  fuels,  in  order  to  cater  for  a 
level  playing  field  while  increasing  the  share  of  renewable  energy  in  the  maritime 
transport  market.  In  addition,  the  proposed  intervention  also  takes  account  of  the 
long  lead-times  required  for  the  deployment  of  new  fuels  in  maritime  transport  as 
already observed in relation to the above-mentioned initiaitives.  

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments 

The  proposed  Regulation  is  a  key  deliverable  of  the  Communication  from  the 
Commission on a Sustainable and Smart Mobility Strategy, which sets out a course 
of action to improve the functioning of the EU internal transport market, and sets the 
objective  to  boost  the  uptake  of  renewable  and  low-carbon  fuels  in  maritime 
transport. 

The  proposed  Regulation  will  create  synergies  with  other  pieces  of  EU  regulatory 
framework, notably the EU ETS Directive, the Renewable Energy Directive and the 
Alternative Fuels Infrastructure Regulation. 

In  terms  of  budgetary  resources,  appropriations  needed  to  implement  the  proposed 
Regulation are foreseen under the available appropriations of the “Support activities 
to  the  European  transport  policy,  transport  security  and  passenger  rights  including 
communication activities” budget line. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

The large majority of the budgetary implications of this proposal are dealt with under 
this  legalislative  financial  statement  of  the  Proposal  for  a  Regulation  on  the  use  of 
renewable and low-carbon fuels in maritime transport. In terms of expenditures, the 
specific budgetary impact of this initiative is limited to the resources necessary for IT 
services  and  IT  system  developments  to  support  montoring  and  reporting  of  the 
requirements of the Regulation.  

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The  proposal  also  foresees  that  penalties  collected  under  the  proposed  Regulation 
will  be  allocated  to  support  common  projects    aimed  at  the  rapid  deployment  of 
renewable  and  low  carbon  fuels  in  the  maritime  sector.  The  collected  funds  will 
constitute external assigned revenue in accordance with Article 21(5) of the Financial 
Regulation,  and  would  be  implemented  in  accordance  with  the  rules  of  the 
Regulation  establishing  the  Innovation  Fund.  The  amount  of  expected  revenues 
would,  however,  depend  directly  on  the  level  of  compliance  with  the  proposed 
targets.  

In  the  impact  assessment,  different  options  have  been  assessed  to  meet  the  general 
objective to lay down harmonised rules to maintain a competitive level playing field 
on  the  Union  maritime  transport  market,  while  increasing  the  uptake  of  renewable 
low-carbon  fuels  from  2025-2050.  The  preferred  option  is  the  most  cost-efficient 
approach. 

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1.6. 

Duration and financial impact of the proposal/initiative 

 limited duration  

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from 2022 to 2025, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned31  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–    the EIB and the European Investment Fund; 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

Management  of  the  proposed  Regulation  will  be  done  overall  by  the  Commission  services 
assisted by the European Maritime Safety Agency as appropriate. 

Member  States  will  be  required  to  carry  out  the  enforcement  of  the  Regulation  by  laying 
down  sanctions  against  economic  operators  at  breach  with  their  obligations  pursuant  to  the 
proposed Regulation. 

31 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

Ships  will  be  required  to  draw  up  a  monitoring  plan  describing  their  plans  for 
complying with the Regulation. On a yearly basis, starting from 2025, ship operators 
will be required to monitor and report on a number of parameters related to their use 
of renewable and low-carbon fuels.  Starting from 2030, operators of passenger and 
container ships will also be required to monitor and report on a number of parameters 
related  to  their  their  use  of  on-shore  power  supply  or  an  alternative  zero-emission 
technology at berth. 

The Commission will also initiate an evaluation  to verify whether the objectives of 
the  initiative  have  been  reached,  based  on  the  data  collected,  the  evolution  of  the 
distribution  infrastructure  as  well  as  a  series  of  targeted  surveys.  This  should  also 
provide an indication on the impact of the initiative on production levels of marine 
RLF  as  well  as  the  cost  evolution  of  these  fuels.  Interactions  with  other  policies 
aimed at decarbonisation of the maritime sector will also form an important element 
of such an assessment to ensure continued consistency and complementarity between 
initiatives. If necessary, the evaluation will inform future decision-making processes 
to ensure necessary adjustments for reaching the set objectives, while also taking into 
account developments of other policy initiatives. 

2.2.  Management and control system(s)  

2.2.1. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed 

The  Commission  will  be  overall  accountable  for  implementing  the  proposed 
Regulation as well as for reporting to the European Parliament and the Council on its 
efficiency  and  proposing  revisions  where  necessary.  The  Commission  may  be 
assisted by EMSA as appropriate in providing the IT services and developing the IT 
tools  necessary  for  the  reporting,  monitoring  and  verification  provisions  of  the 
proposed  Regulation.  Member  States  will  be  required  to  carry  out  enforcement, 
notably  by  applying  administrative  fines  in  cases  of  non-compliance  by  ship 
operators. Enforcement activites may be carried out as part of existing inspections, in 
particular during Port State Control. 

The  external  assigned  revenues  coming  from  the  collected  penalties  will  be 
implemented in accordance with the rules of the Innovation Fund. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The main policy risks related to the initiative are as follows : 

1)  Risk  of  loss  of  competitiveness  of  the  maritime  transport  market  or  loss  of 
connectivity. This risk could arise if operators would incur increased costs due to the 
introduction  of  renewable  and  low-carbon  fuels  that  undermine  their  ability  to 
operate and remain competitive in the global maritime transport market. This could 
lead to a reduction of routes operated and a loss of connectivity within, or to the EU. 
Such  a  risk  has  a  low  likelihood  and  is  mitigated  by  several  factors.  First,  the 
measures  proposed  by  this  Regulation  will  apply  equally  to  ships  of  all  flags. 
Secondly,  the  targets  will  gradually  increase,  and  remain  low  at  the  start,  ensuring 

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that  the  overall  marine  fuel  price  increase  will  be  minimal.  In  addition,  the 
preliminary  analysis  carried  out  as  part  of  the  impact  assessment  concluded  on  the 
overall low likelihood of competitiveness loss. 

2)  Risk  of  lack  of  availability  of  renewable  and  low-carbon  fuels  or  OPS 
installations. This risk could materialise notably if the targets set by the Regulation 
would require RLF to be available in quantities exceeding the actual market supply, 
for reasons linked to feedstock shortages, lack of production capacity, or competition 
for  the  same  fuels  from  other  sectors.  This  risk  is  well  identified  and  mitigated  by 
several  factors.  In  particular,  the  targets  have  been  closely  vetted  within  the 
Commission  in  the  context  of  the  2030  Climate  Target  Plan  economic  analysis,  as 
well  as  during  consultations  with  the  industry,  which  provided  assurance  on  their 
adequacy given the likely evolution of the market.  In addition, the requirements on 
demand  set  by  this  Regulation  have  been  closely  coordinated  with  the  proposed 
provisions  for  infrastructure  under  the  Alternative  Fuels  Infrastructure  Regulation 
and for fuel supply under the Renewable Energy Directive. This will help overcome 
the  coordination  challenges  between  demand,  infrastructure  and  supply,  enhance 
regulatory  predictability  and  facilitate  the  necessary  investments.  Should  the 
proposed  targets  become  obsolete,  the  proposed  Regulation  includes  reporting  and 
review  mechanisms  that  will  allow  updating  them  in  line  with  the  evolution  of  the 
market. 

3) Risk of carbon leakage. Being an international sector by nature, maritime transport 
is highly prone to carbon leakage. Due to their large tank capacities, most ships are 
able to undertake long voyages on a single bunkering. If rules were to apply to fuels 
sold  in  Europe  without  obligations  for  their  use,  it  would  be  possible  for  many 
vessels  active  in  both  deep  sea  and  short  sea  trades  to  bunker  fuel  outside  the  EU. 
That  is  why this  Regulation  obliges the ships to use of RLF thus  targeting demand 
specifically. 

From an internal control point of view, the key risks are:  

4) A lack of reliable or sufficient data. Such a risk would compromise the ability to 
assess  the  effectiveness  of  the  proposed  Regulation  and  would  make  it  difficult  to 
determine  what  features  should  be  revised  to  improve  its  effectiveness  and  when 
relevant.  Mitigating  this  risk  requires  ship  operators  to  provide  robust  and  detailed 
data.  To  ensure  this,  accredited  verifiers  will  have  to  assess  the  quality  of  the 
submitted  data.  To  this  end,  the  Commission  needs  to  be  provided  with  adequate 
resources to establish and operate the IT infrastructure needed, as well as to conduct 
several  regular  capacity  building  activities  such  as  workshops  and  seminars, 
gathering fuel suppliers and ship operators, to inform and train them on the reporting 
requirements.   

5) Lack of uniform verification procedures. If the accredited verifiers were to apply 
heterogenous criteria in their assessment of the data provided by ship operators, this 
could  lead  to  a  lack  of  consistency  in  the  calculations  of  the  average  yearly  GHG 
intensity  of  a  ship.  This  might  potentially  distort  the  level  playing  field.  To  ensure 
harmonized verification procedures, the independent verifiers must be accredited by 
a national accreditation body pursuant to Regulation (EC) No 765/2008. In addition, 
the Regulation specifies the verification procedures that the verifier must follow. If a 
verifier does not fulfil its obligations, its accreditation can be repealed. 

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2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  

Under  the  proposed  Regulation,  financing  will  be  needed  for  the  Commission  to 
provide  the  IT  services  and  developing  the  IT  tools  necessary  for  the  reporting, 
monitoring  and  verification  provisions  of  the  proposed  Regulation.  The  tools  will 
build on the existing IT tool that support the EU MRV Regulation, THETIS-MRV. 
By  expanding  an  existing  tool  rather  than  developing  a  new  one  from  scratch, 
resources will be used more efficiently. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

The  proposed  Regulation  contains  several  provisions  specifically  targetted  at 
preventing  fraud  and  irregularities,  in  line  with  the  DG  MOVE  antifraud  strategy. 
Namely, the proposed Regulation ensure that data submitted by economic operators 
are  required  to  be  checked  by  independent  accredited  verifiers.  The  proposed 
Regulation contains clear and detailed rules on the legal enforcement to ensure that 
the  obligations  it  contains  are  not  circumvented  by  economic  operators.  The 
Commission  will  ensure  that  appropriate  measures  are  in  place  to  protect  the 
financial interests of the Union, inter alia by the application of preventive  measures 
against fraud, corruption and any other illegal activities; by effective checks and, if 
irregularities,  fraud  or  breach  of  obligations  are  detected,  by  the  recovery  of  the 
amounts unduly paid. 

In particular, DG MOVE maintains a specific Anti-Fraud Strategy and Action Plan 
that  enumerates  the  specific  controls  applied  within  the  DG,  including  awareness 
actions  and  trainings.  DG  MOVE’s  antifraud  strategy  is  based  on  the  Commission 
Antifraud Strategy  adopted in  2019 and its implementation is  coordinated with  DG 
OLAF and the Commission’s internal anti-fraud network. 

The proposed Regulation will contain other specific measures to prevent and address 
fraud and irregularities. In particular, the Regulation will contain standard provisions 
(recommended  by  OLAF)  on  protecting  the  EU’s  financial  interests,  to  ensure  that 
audits  and  on-the-spot  checks  can  be  carried  out  by  the  Commission  services, 
including OLAF. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework 

Number  

02.200401 

1 

Type of  
expenditure 

Diff./Non-
diff.32 

Contribution  

from 
EFTA 
countries
33 

from 
candidate 
countries34 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

Diff. 

NO 

NO 

NO 

NO 

32 
33 
34 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

11 

  EN 

 
 
 
 
 
                                                 
3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–    The proposal/initiative requires the use of operational appropriations, as explained below: 

Heading of multiannual financial  
framework  

Number  1 - Single market, innovation and digital 

DG: MOVE 

 Operational appropriations  

02.200401 

TOTAL appropriations 
for DG MOVE 

Commitments 

Payments 

Commitments 

Payments 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

Year 
2023 

Year 
2024 

0,50 
0,25 

0,50 

0 
0,25 

0 

0,25 

0,25 

0,50 

0,25 

0 

0,25 

(1a) 

(2a) 

=1a+1b 
+3 

=2a+2b 

+3 

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADING 1 
of the multiannual financial framework 

Commitments 

=4+ 6 

0,50 

0 

Payments 

=5+ 6 

0,25 

0,25 

EUR million (to three decimal places) 

TOTAL 

0,5 
0,5 

0,5 

0,5 

0,5 

0,5 

0,5 

0,5 

EN 

12 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EN 

13 

EN 

 
 
 
 
 
Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative 
Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes. 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6)  

TOTAL 

EUR million (to three decimal places) 

DG: <…….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG <…….> 

Appropriations  

N.A. 

N.A. 

TOTAL appropriations 
under HEADING 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

N.A. 

N.A. 

N.A. 

N.A. 

Year 
N35 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework  

Commitments 

0,5 

0 

Payments 

0.25 

0.25 

0,5 

35 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for  instance: 2021). The same  for the 
following years. 

EN 

14 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.  Estimated output funded with operational appropriations  

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type36 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 137… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

36 
37 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

15 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N 38 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show the 
duration of the impact (see point 1.6) 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 739 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints. 

38 

39 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first 
year of implementation (for instance: 2021). The same for the following years. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

16 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.1.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources.  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation 
Offices) 

20 01 02 03 (Delegations) 

01 01 01 01  (Indirect research) 

 01 01 01 11 (Direct research) 

Other budget lines (specify) 

 External staff (in Full Time Equivalent unit: FTE)40 

20 02 01 (AC, END, INT from the ‘global envelope’) 

20 02 03 (AC, AL, END, INT and JPD in the delegations) 

XX 01  xx yy zz  41 

- at Headquarters 

- in Delegations  

01 01 01 02 (AC, END, INT - Indirect research) 

 01 01 01 12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

40 

41 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JPD= Junior Professionals in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

17 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–    can be fully financed through redeployment within the relevant heading of the 

Multiannual Financial Framework (MFF). 

Reprogramming within budget line 02.200401 

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation. 

Explain  what  is  required,  specifying  the  headings  and  budget  lines  concerned,  the  corresponding 
amounts, and the instruments proposed to be used. 

–    requires a revision of the MFF. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

The proposal/initiative: 

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
N42 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

42 

Year N is the year in which implementation of  the proposal/initiative starts. Please replace "N" by the 
expected first year of implementation (for instance: 2021). The same for the following years. 

EN 

18 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

–   on own resources  

–   on other revenue 

–   please indicate, if the revenue is assigned to expenditure lines 

Appropriations 
available for 
the current 
financial year 

Budget revenue line: 

Article 
depending 
expenditure line 

………… 
the 
on 

     EUR million (to three decimal places) 

Impact of the proposal/initiative43 

2023 

2024 

2025 

2026 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

p.m. 

p.m. 

p.m. 

p.m. 

For assigned revenue, specify the budget expenditure line(s) affected. 

The Innovation Fund. 

Other  remarks  (e.g.  method/formula  used  for  calculating  the  impact  on  revenue  or  any  other 
information). 

The proposal foresees that penalties collected under the proposed Regulation should be used  
to  support  the  rapid  deployment  of  renewable  and  low  carbon  fuels  in  the  maritime  sector. 
The funds referred to in paragraph 1 will constitute external assigned revenue in accordance 
with Article 21(5) of the Financial Regulation, and  will be implemented in accordance with 
the  rules  of  the  Regulation  establishing  the  Innovation  Fund.  The  amount  of  expected 
revenues  would,  however,  depend  directly  on  the  level  of  compliance  with  the  proposed 
targets.   

43 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

EN 

19 

  EN