Home News and Resources News News 05 Apr, 2023 FuelEU Maritime - Looking at the Potential Implications on Ships Dean Crossley Head of Loss Prevention Asia FuelEU Maritime is an initiative of the European Union (EU) that aims to reduce greenhouse gas (GHG) emissions from shipping within the EU. It is part of the EU's broader goal of achieving climate neutrality by 2050, and it is a critical step towards reducing GHG emissions from the shipping sector and in the promotion of using sustainable alternative fuels to power ships. The initiative will have substantial implications, both in the short and long term, for ships and the shipping industry operating in the EU's territorial waters and ports and for ships arriving at EU ports from non-EU countries. Download PDF Following the press release of the Council of the EU on 23 March 2023, the provisional political agreement is moving closer towards formal approval and adoption, with the intention for the proposed Regulation to enter into force from 1 January 2025. The intended Regulation will apply to all ships above 5,000 gross tonnages that call at EU ports, regardless of their flag but 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. The most significant implication of FuelEU Maritime on ships is the requirement to reduce emissions. The initiative sets targets for reducing emissions from ships that operate within the EU. By 2030, ships must reduce their GHG emissions by 6%, then by 31% in 2040 compared to 2020 levels, and work towards full decarbonization by 2050. This means that ships will need to adopt new technologies and fuels to achieve these targets. For ships to meet the emissions reduction targets, they will need to transition from traditional fossil fuels such as heavy fuel oil and marine diesel to alternative fuels such as liquefied natural gas (