Dear Members,
You may find here below a summary of latest EU developments and the EU Fit 55 Policy Package.
A brief containing more details is also attached below.
Summary of developments in EU and the EU Fit for 55 policy package- April/June 2024
EU ETS
- The Commission has published a new initiative on permanent emissions storage through carbon capture and utilisation under the EU ETS Directive.
- Feedback from EU Shipowners associations is that many companies have issues getting their monitoring plans approved by their national authorities.
- The Commission confirmed that the EU ETS directive applies from 1st January 2024 and not from the date of transposition at the national level.
- A draft Guidance Document for shipping companies on the EU ETS and MRV Maritime Regulation is expected.
INNOVATION FUND
DG CLIMA will launch before the end of the year, a second Hydrogen Auction. The estimated budget for the general basket is €1 billion and for the maritime basket is €200 million.
- Eligibility criteria under the Innovation Fund 2024 General Call are not favorable for tramp international shipping and is considered virtually impossible for most tanker or dry bulk companies to meet, given the itinerant and global nature of tramping.
FUEL EU MARITIME
- With regards to the Reporting of the Emissions EU ETS &FUEL EU much information will be common and will only be reported once in THETIS FuelEU Database ecosystem.
- The Draft Template of the Fuel EU Monitoring plan of the FUEL EU Maritime is available
- 14 Implementing and Delegated Acts are expected.
- The implementing acts on verification activities and monitoring plans will be published in early July.
SUSTAINABILITY CERTIFICATION FOR MARINE BUNKER FUELS (ETS & FUEL EU)
Both FuelEU Maritime and ETS extension to maritime requires a demonstration of RED certification for biofuels and renewable synthetic fuels used onboard ships. The end-goal objective, under both scopes of FuelEU and MRV/ETS is to ensure that the Verifiers responsible for the assessment of compliance under both FuelEU and MRV/ETS receive robust reassuring evidence of RED-compliance of marine bunker fuels.
CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE
The European Parliament formally adopted in plenary the Corporate Sustainability Due Diligence Directive. The rules will apply gradually to EU and non-EU companies and parent companies with turnover of more than 450 million euros.
NET ZERO INDUSTRY ACT (NZIA)
The European Parliament formally adopted the final text of the Net-Zero Industry Act (NZIA). For shipping fuels, introduced a benchmark to match 40% of the deployment needs for clean fuels for shipping with production capacity in Europe.
- The 40% benchmark of NZIA for advanced biofuels and e-fuels for shipping should be translated into concrete requirements for port infrastructure, as well as investments to turn major European ports into energy hubs
WASTE SHIPMENT REGULATION
The waste shipment regulation was published in the Official Journal of the EU on 30 April. It will enter into force on 20 May 2024. Based on the amended Article 82, ships can be recycled in recycling facilities located outside the OECD if they meet the requirements of the EU SRR and are added to the EU List, if they meet the requirements of the EU SRR and are added to the EU list.
ALTERNATIVE FUELS INFRASTRUCTURE REGULATION (AFIR)
The Alternative Fuels Infrastructure Regulation (AFIR), came into force on 13 April 2024.
EU MARITIME INDUSTRIAL STRATEGY
The Council conclusions adopted provide a framework for the Commission to develop a maritime industrial strategy.
NEW NORWEGIAN REGULATION ON HANDLING OF HULL BIOFOULING
The proposed regulation aims to prevent the introduction of hazardous invasive species to Norway through hull biofouling resulting from international shipping and to prevent the further spread of hazardous non-indigenous species in Norwegian waters. The regulation will enter into force on 01 July 2025.
Summary of developments in EU and the EU Fit for 55 policy package- January/March 2024
EU ETS
The Commission Implementing Decision (EU) 2024/411 including the list of administering authorities in respect of shipping companies was published.
- DG CLIMA has received many questions on the possibility for the shipowner to authorise the bareboat charterer, via a contract, to become the responsible entity for MRV and ETS compliance purposes and will clarify the FAQs to make it clearer.
INNOVATION FUND
The deadline to submit a project proposal is 9 April 2024. The evaluation of the projects will take place between April and October 2024.
FUEL EU MARITIME
FuelEU Maritime Regulation will apply from 1 January 2025 and promotes the use of renewable and low-carbon fuels in maritime transport for ships above 5000 GT, intra-EU traffic + 50% international, EU ports (same as for ETS).
- Additional delegated and implementing acts will be prepared to implement the regulation.
- The publication of the FAQs on FuelEU Maritime is expected to take place mid-April.
WASTE SHIPMENT REGULATION
A provisional agreement on the revision of the waste shipment regulation was reached. The revised waste shipment regulation amends the EU Ship Recycling Regulation to clarify the legal framework applicable to the recycling of EU flagged ships.
- Ships can be recycled in recycling facilities located outside the OECD, if they meet the requirements of the EU SRR and are added to the EU list.
SCHENGEN BORDERS CODE
The Council and the Parliament have reached a provisional agreement to update the Schengen Borders Code, which include the rules governing border control of persons crossing the external EU borders of the EU Member States.
- Seafarers have been classified as essential workers, and have been included in the list of exemptions from entry restrictions to the EU in case of the large-scale health emergency situations.
- Adoption expected in June 2024
CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE
The Directive will set obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, with respect to their activities in their value chains.
- The law is possible to be finalised by June 2024.
MARITIME SAFETY PACKAGE
The Council and the Parliament reached a provisional agreement that will need to be formally adopted by the Parliament and the Council before being published in the EU Official Journal.
- CII in the ship risk profile was not included and the Commission shall assess its suitability after IMO has concluded the revision of its carbon intensity indicator (CII).
- The HKC is added to the list of parameters of the ship risk profile.
- Electronic certificates are not included in the list of parameters of the ship risk profile
NET ZERO INDUSTRY ACT (NZIA)
The NZIA aims to establish a framework of measures for strengthening Europe’s net-zero technology products deployment and manufacturing capacity.
RENEWABLE ENERGY DIRECTIVE
The directive is introducing a combined energy-based target for advanced biofuels and biogas and renewable fuels of non-biological origin, including a minimum share for renewable fuels of non-biological origin.
- The Commission is expected to formally approve Annex IX to the Renewable Energy Directive as a delegated act. Through Annex IX the aviation sector will have prioritized access to biofuels vis-à-vis shipping, which is problematic.
- The revised directive will soon be published in the Official Journal of the EU and will enter into force on the 20th day following its publication.
CORPORATE SUSTAINABILITY REPORTING DIRECTIVE (CSRD)
The proposal requires that listed companies should disclose information about the risks and opportunities arising from social and environmental issues to evaluate the green and social sustainability of their activities.
- The new standards were scheduled for adoption on 30 June 2024, but now will be postponed to 30 June 2026.
- The Commission will publish eight sector-specific reporting standards before the new deadline on 30 June 2026.
COMMUNICATION ON THE EU 2040 CLIMATE TARGET
For shipping, reference is made to the “Fit for 55” measures. The accompanying impact assessment indicates that the “higher end of the IMO target range (-80% in 2040 vs 2008)” and the FuelEU Maritime regulation will be the building blocks for the decarbonisation of the sector and is a clear message of support to the IMO process.
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For 2023 “Summary of developments in EU and the EU Fit for 55 policy package” articles please click here.
