The FuelEU Maritime Regulation in ANNEX IV B. outlines the formula for calculating the penalty for non-compliance with GHG intensity targets.

FuelEU Penalty = Compliance Balance X 2400 / GHGIE actual X 41000

The penalty is determined by multiplying the following three factors:

i) Ship’s Total Energy Consumption: The total energy consumption of the ship during the reporting period, measured in megajoules (MJ).

ii) Amount of Money per MJ Energy Consumed: The cost assigned per megajoule of energy consumed.

iii) GHG Intensity Compliance Deficit: The percentage by which the actual GHG intensity should have been reduced to meet the GHG intensity target.