DNV: cost-efficient strategies can cut price of FuelEU Maritime compliance

(Posted on 11/12/24)

According to a new DNV white paper outlining FuelEU Maritime requirements and compliance strategies for shipowners, compliance with the upcoming regulations will be expensive but applying certain strategies can significantly reduce the cost.

Effective from 1 January 2025, the rules mandate stringent greenhouse gas (GHG) emission intensity requirements for ships over 5,000 gross tonnage (GT) transporting cargo or passengers for commercial purposes in the EU/ EEA. GHG emissions are calculated from a well-to-wake perspective. In addition to emissions from onboard combustion, this calculation also includes emissions related to the extraction, cultivation, production, and transport of the fuel. The regulation includes provisions for crediting ships using wind-assisted propulsion.

The DNV paper provides shipowners with insights to reduce compliance expenses and avoid major penalties. It contains a comprehensive overview of the regulation, including a case study which highlights a range of different compliance strategies. This shows how the adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime compared to using Bio-MGO as a compliance option.

Knut Ørbeck-Nilssen, DNV Maritime CEO, said: “It is essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance at reduced costs.

“Just paying the penalty could prove a more costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimizing costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.

A key point emphasized in the report is that the International Maritime Organization is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the fall of 2025 and come into force around mid-2027.

lutely essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation so that they are equipped to make informed business decisions. Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance and significantly reduce costs.

“Doing nothing and paying the penalty could prove to be a costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimizing costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain.

A key point emphasized in the report is that the International Maritime Organization is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the second half of 2025 and come into force around mid-2027.

Latest News

CORE POWER welcomes agreement to accelerate investment in maritime decarbonisation

The U.S. and the UK have announced a bilateral collaboration to accelerate reactor licensing from three... Read more

Cobelfret accelerates digital transformation with integrated maritime platform

Cobelfret, a leading global dry bulk shipowner and operator based in Singapore, has partnered with Smart... Read more

Support grows for India’s new maritime CCTV rules

Zelim is calling on international regulators and flag states to follow India’s lead on enhancing... Read more

Ionic extends Orca AI to bulker fleet to boost safety

Athens-based Ionic controls a fleet of eight crude tankers and 11 bulkers under its respective wet and... Read more

Columbia and Pan Marine launch Egyptian JV

Columbia Group, a global leader in integrated maritime services, has announced the establishment of... Read more

Indonesian ship operator selects Veson as partner for digitalisation Journey

Veson Nautical, a global leader in maritime data and freight management solutions, and Andhika Lines... Read more

VIKAND : Digitalisation presents emerging psychological pressures for seafarers

As the digital transformation accelerates across the maritime industry, global maritime healthcare leader... Read more

Wellness at Sea training re-shaping wellbeing for India’s Gen Z seafarers

More than 2,000 Indian maritime cadets, ratings and trainees have benefited from a pioneering partnership... Read more

Cautious optimism for Western Bulk after challenging first half of 2025

For the first half of 2025, Western Bulk Chartering AS (Western Bulk, WEST) generated a positive Net... Read more

NORDEN sells additional vessel and adds Panamax to strengthen global freight service

NORDEN has announce that we have declared an additional Supramax purchase option and subsequently sold... Read more