FuelEU Maritime must include a supplier mandate – ECSA

Newly elected members of the European Parliament must include mandates on fuel suppliers in future revisions of FuelEU Maritime and RED III, a European Community of Shipowners Association (ECSA) report says.

PHOTO: The European Parliament building in Strasbourg, France. Getty Images

The EU will hold elections to elect members of the European Parliament (MEPs) between 6-9 June. Ahead of the elections, the European Community of Shipowners Association (ECSA) has released a report setting forth its key recommendations for the next five years to help elected members lay the foundation for net-zero shipping by 2050.

The report urges upcoming EU MEPs to introduce a regulation mandating fuel suppliers to produce low- and zero-carbon fuels in the FuelEU Maritime as well as the EU’s new Renewable Energy Directive (RED III).

“Requirements on fuel suppliers should be included in EU legislation to ensure that enough clean and safe fuels are produced for the maritime sector,” it explains.

A financial boost for shipping’s green transition

The report's authors recommended that the dedicated allocation for shipping under the EU's Innovation Fund should be urgently used to expedite the production of low- and zero-emission fuels and technologies to decarbonise shipping. The funds can also be used to “bridge the price gap between conventional and low-and zero carbon shipping fuels and be prolonged after 2030,” it added.

The European Commission (EC) launched the Innovation Fund last year with a budget allocation of €4 billion ($4.36 billion). The funding will come from a portion of revenues generated from the EU ETS, according to the EC. The Innovation Fund has earmarked a budget of 20 million ETS allowances (EUAs) for maritime projects.

“Supporting and prioritising investments in low- and zero-carbon technologies and fuels will be essential. The uptake of clean, safe and affordable fuels for shipping should be a clear priority for the EU ETS Innovation Fund, while the 2 billion Euros earmarked for the maritime sector should be allocated through dedicated calls,” the report said.

It advocated reducing the “administrative burden” on small businesses to facilitate participation in the Innovation Fund.

Finally, the report suggested that new MEPs align FuelEU Maritime with IMO's upcoming mid-term measures to "ensure a level playing field" for the European shipping industry.

By Konica Bhatt

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