MEMBER ALERT Shipowners Claims Bureau, Inc., Manager One Battery Park Plaza 31 st Fl., New York, NY 10004 USA Tel: +1 212 847 4500 Fax: +1 212 847 4599 https://www.american-club.com American Club Member Alert – Dec em ber 11 , 2024 1 DECEMBER 11, 2024 THE EUROPEAN UNION (EU): FUELEU MARITIME REGULATIONS As of January 1, 2025, new requirements within the EU, promoting the use of renewable and low-carbon fuels for maritime transportation, referred to as FuelEU maritime regulations, are due come into force. The regulations will take effect in conjunction with the implementation of the EU Emissions Trading System (ETS), as described in the November 6, 2023 Club Alert, The European Union (EU) Emissions Trading System (ETS): Monitoring, Reporting and Verification (MRV) Requirements. The FuelEU regulations take into account the entire process of fuel production, delivery, use on vessels, and the carbon emissions that are produced at each stage, otherwise known as from “well-to-wake” (WtW). Concomitantly, the EU ETS takes into account those carbon emissions resulting from fuel used onboard vessels, described as “tank-to-wake” (TtW). The primary objective of the EU ETS is to promote energy efficiency through a “cap-and-trade” pricing system, while the FuelEU maritime regulations are aimed at promoting the use of decarbonized energy and other low carbon fuels. The FuelEU maritime regulations promote the use of vessels with zero emission-based technology (e.g., wind sails, electrical fuel cells or wind assisted equipment) and passenger and container ships that utilize onshore power supply (OPS) as well as lower greenhouse gas (GHG) emission energy options. This Alert reviews the FuelEU requirements that have an immediate effect upon Members’ operations beginning on January 1, 2025. Your Managers will address future requirements at a later date. Which vessels do the FuelEU requirements apply to? Vessels of 5,000 gross tons (GT) or more engaged on voyages transporting passengers or cargo for commercial purposes within, to, and/or from EU and European Economic Area (EEA) ports are required to comply in regard to: • the energy consumed during ports of call within the jurisdiction of an EU/EEA member State; • the entirety of energy consumed on voyages during which both ports of call are within the jurisdiction of EU/EEA member States; • one half (1/2) of the energy consumed on voyages from a port of call under the jurisdiction of an EU/EEA member State to a port of call outside the jurisdiction of an EU/EEA member State; and • one half (1/2) of the energy consumed on voyages from a port outside the jurisdiction of an EU/EEA member State to a port of call under the jurisdiction of an EU/EEA member State. MEMBER ALERT Shipowners Claims Bureau, Inc., Manager One Battery Park Plaza 31 st Fl., New York, NY 10004 USA Tel: +1 212 847 4500 Fax: +1 212 847 4599 https://www.american-club.com American Club Member Alert – Dec em ber 11 , 2024 2 The regulations exclude warships, naval auxiliary vessels, fish catching or fish processing vessels, wooden vessels of primitive build, vessels that are not propelled by mechanical means, or government vessels used for non-commercial means. What is considered a “port of call” under FuelEU? A port of call is defined as a port where vessels stop to load or discharge cargo, or embark or disembark passengers. Under these regulations, the following are not designated as a “port of call”: • stops made with the sole purpose of ref