Navigating the Compliance Channel of EU Maritime Regulations: FuelEU vs EU ETS MRV

As the maritime industry sails forward into an era of stringent environmental regulations, the European Union stands at the helm, steering with two groundbreaking frameworks: FuelEU Maritime and the EU Emissions Trading System (ETS) MRV (Monitoring, Reporting, and Verification). These regulations represent the EU’s intensified efforts to curtail greenhouse gas emissions from maritime transport. Let’s embark on a journey to understand these regulations and their implications for the maritime sector.

The Destination: Objectives and Reasoning

FuelEU Maritime fosters innovation and lessens fossil fuel dependence to achieve net-zero emissions by 2050.

The EU ETS MRV integrates maritime transport into the EU emissions trading system, creating a market-driven approach to emissions reduction. By placing a financial cost on emissions, it incentivizes shipping companies to adopt cleaner technologies and practices, aligning with the EU’s climate targets.

Both FuelEU Maritime and the EU ETS MRV are pivotal to the EU’s climate strategy, targeting sustainable maritime fuel use and carbon intensity reduction. Together, these regulations aim to guide the maritime industry towards a greener future.

As we navigate these regulatory waters, it’s clear that the journey towards a sustainable maritime industry is well underway. The course has been charted, and the destination is in sight. It’s up to us, the maritime community, to stay the course and sail towards a greener future.

Financial Impact Comparison; LFO B30 vs LFO

Vessel: MV GeoServe
Departure Port: New York
Arrival Port: Rotterdam
Distance: 3400nm (average)
Estimated Fuel Consumption: 30 t/day
Average Speed: 13 kts
Total Fuel Consumption Passage: 327t
Total Fuel Consumption Port(Rotterdam): 30t

Scenario 1:
LFO B30-
EU ETS Exposure: 20,913 € (EUA at 70€)
FuelEU Compliance Surplus: 189,450 €

Scenario 2:
LFO-
EU ETS Exposure: 29,876 € (EUA at 70€)
FuelEU Penalty: 10,445.5 €

(Map courtesy – Searoutes)

GeoServe: Your dedicated Emission Partner

At GeoServe, we are committed to simplifying and streamlining all your maritime compliance and optimization needs. Our comprehensive suite of services ensures that you meet regulatory requirements while maximizing your operational efficiency. Here’s how we can help:

• EU MRV Plans: We provide meticulous monitoring, reporting, and verification (MRV) plans tailored to meet EU regulations, ensuring your compliance with ease.
• EUA Allotments: Our experts handle your EU Emissions Trading System (ETS) allowances, optimizing your allocations and ensuring cost-effectiveness.
• EU ETS Voyage Statements: We manage your EU ETS voyage statements, ensuring accurate and timely submissions to avoid future penalties and maximize your compliance.
• MOHA (Maritime Operator Holding Account): Our MOHA services guarantee that you get your MOHA in time with the assigned Administrative Authority (AA).
• FuelEU Maritime MP’s: We develop and implement FuelEU Maritime Monitoring Plans, helping you stay ahead of evolving regulations and achieve sustainability goals.
• Emissions Management: Our advanced emissions management solutions enable you to monitor, reduce, and report emissions effectively, contributing to a greener future.

Partner with GeoServe and experience seamless compliance management and operational excellence. Let us take care of the complexities so you can focus on what you do best – navigating the seas.

Contact us today to learn more about how GeoServe can elevate your maritime operations.

*Inclusion in the EU ETS to be considered as part of the ETS review.

**(subject to change) https://ghgprotocol.org/sites/default/files/ghgp/Global-Warming-Potential-Values%20%28Feb%2016%202016%29_1.pdf