Cyprus Shipping Chamber Seeks Clarity on New Green Rules

12

The Cyprus Shipping Chamber has voiced concerns about a proposed bill that aims to strengthen rules for sustainable fuels in the transport sector. The bill, named the Sustainability and Fuel Emissions Amendment Law of 2025, is designed to align Cyprus legislation with recent European Union directives, setting new targets for renewable fuels and emissions reductions.

Main Provisions of the Bill

The proposed law sets binding targets for renewable energy use in transport, including a specific indicative target of 1.2% for non-biological renewable fuels in shipping by 2030. It introduces stricter criteria for sustainability, compliance verification, and a new EU-wide database for fuel data. The bill also outlines penalties for non-compliance, with fines up to €200,000 and potential ship detention for issues like excessive sulfur content.

Cyprus Shipping Chamber’s Concerns

While supporting the goals of the legislation, the Cyprus Shipping Chamber has raised several key concerns. The chamber argues that the new verification and reporting requirements, while necessary, must be practical and not create excessive administrative or financial burdens, particularly for smaller suppliers. It has called for clarification on procedures and timelines for compliance.

Specific Issues Raised

The CSC highlighted several specific areas of concern:

  • Duplicate Reporting: The shipping sector already adheres to strict reporting under a separate EU regulation (2015/757). The new bill could lead to duplicate oversight and inconsistencies, reducing overall effectiveness.
  • Penalties: The chamber considers the fines and the risk of vessel detention to be serious commercial issues. It has requested that sampling, testing, and appeal procedures be transparent and fair.
  • Operational Realities: The CSC pointed out that a significant amount of fuel bunkered in an EU port is consumed outside the EU. It questioned the practicality of requiring suppliers to report on fuel consumption data for fuel used internationally.
  • Recommendations: To mitigate these issues, the chamber recommended simplifying reporting obligations, using existing EU mechanisms, and ensuring that new requirements are proportionate to international shipping practices. It also suggested a transition period without sanctions and incentives for investments in green fuels.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Cyprus Mail