6.4.2022
EN
Official Journal of the European Union
C 152/149
3.14.
The IMO Decarbonisation Strategy has identified a list of candidate short-, medium- and long-term measures for CO2 emission reduction.
Taking a major step forward for the energy transition of the maritime sector, the ΙΜΟ member governments, including all EU member States, at the International Maritime Organization (IMO) Marine Environmental Protection Committee (MEPC) 76th session, held from 10-17 June 2021, adopted a comprehensive package of legally binding technical and operational short-term measures to reduce CO2 emissions from ships, which will enter into force on 1 November 2022.
3.15.
More specifically, the measures adopted at MEPC 76 require ships of 400 gt and above to calculate their Energy Efficiency Existing Ship Index (EEXI) following technical means to improve their energy efficiency, and all ships above 5 000 gt to establish their annual operational Carbon Intensity Indicator (CII) and CII rating.
Carbon intensity links the GHG emissions to the amount of cargo carried over the distance travelled.
The IMO will review the effectiveness of the implementation of the CII and EEXI requirements by 1 January 2026 to determine if any further amendments are necessary.
3.16.
International shipping at large is the world’s largest cross-trader, transporting between third countries for more than 90 % of its trading capacity essential cargoes for the world economy, such as oil and oil products, gas, chemical products, iron and other ores, coal and fertilisers.
Therefore, there must be global fuel availability of the required EU specification in ports around the world in order for international trade to run smoothly.
3.17.
International shipping is primarily an SME-driven industry which, when it comes to bulk/tramp shipping is a genuinely entrepreneurial sector with the characteristics of a perfectly competitive market.
This is because the sector comprises thousands of companies worldwide and is not dominated by a limited number of very large corporations or alliances, as is the case in liner shipping and most major industrial and service sectors globally.
Therefore, SME-sized shipping companies do not have the bargaining power to distribute and cover new fuels in ports around the world.
3.18.
The Commission impact assessment (IA) on the draft FuelEU Maritime regulation envisages an increased demand for renewable and low-carbon fuels (RLF) in the maritime transport sector, with the emphasis, inter alia, on liquid biofuels, decarbonised gas (including bio-LNG), e-fuels, decarbonised hydrogen-derived fuels (methanol and ammonia) and electricity.
An increased uptake of biofuels is anticipated by the IA, while ‘the importance of biofuels is also recognised in particular for “hard-to-decarbonise” sectors, such as aviation and maritime transport’.
3.19.
There is the challenge of developing production and the required supply infrastructure of e-fuels worldwide.
A new EU target of at least a 40 % share of energy from renewable sources in 2030 is set under the revised RED proposal.
However, it is recognised that shipping has greater decarbonisation challenges compared to other sectors, due to the current lack of market-ready zero-emission technologies.
Indeed, low-and zero-carbon fuels are not currently available for shipping in the market.
In addition, the capital investment needed for developing production e.g. green-ammonia (e-ammonia), depending on the production methods and the specific fuel production pathways, is estimated to be approximately between USD 1 200 000 000 000-1 650 000 000 000 (UMAS, 2020) and do not include the investments required for the supply infrastructure worldwide.
3.20.
Therefore, the target set for a 75 % average reduction in the greenhouse gas intensity of energy used on-board by ships by 2050 is overestimated.
One of the biggest obstacles to decarbonising the maritime sector will be the provision of the new bunkering infrastructure that will be required in ports around the world to supply ships safely with alternative fuels.
It is in the interests of the shipping industry for such infrastructure to be developed rapidly, so that new fuels are readily available globally, and from as many ports as possible, as this will make the price of zero-carbon fuels less expensive, thus facilitating compliance with the stated objectives of the proposed Regulation.
3.21.
‘Drop-in’ fuels, such as advanced biofuels e.g.
Hydrotreated Vegetable Oils (HVOs), which have limited compatibility with all modern ship engines (all vessel types irrespective of trade) that can burn biofuels without requiring technical, safety or design adjustments, could be a partial solution at least in the bulk/tramp sector.
However, it is the responsibility of fuel suppliers to make sure that when mixed with fossil fuels, the specified blends are fit for purpose for use on ships and are made available in sufficient quantities in EU ports.
Biofuels imported into the EU market should meet the EU’s sustainability criteria as laid down in the revised RED II Directive (Annex IX, Part A and B).
The draft FuelEU Maritime Regulation shifts the responsibility for meeting RED’s sustainability criteria to ships.
Moreover, incentivising the uptake of biofuel blends of the specified quality purchased outside the EU could present enforcement challenges, putting at risk the achievement of emissions reduction targets.