Impact Of FuelEU On Norway And Iceland

By
Mfame Editor
-
27

FuelEU Maritime regulations, which are designed to decarbonize maritime transport within the EU, will not directly apply to Norway and Iceland despite their membership in the European Economic Area (EEA). This exclusion results in a distinct regulatory framework for these countries, with several implications:

Implications for Norway and Iceland

  1. Partial Inclusion in FuelEU
    • 50% of Energy on EU Voyages: From January 1, 2025, 50% of the energy used on voyages between ports in Norway or Iceland and the EU Member States will be subject to FuelEU compliance. This partial inclusion aligns their maritime activities with EU decarbonization goals for cross-border voyages.
  2. Exclusion of Certain Voyages
    • Voyages within Norwegian or Icelandic waters and between Norway and Iceland are excluded from FuelEU.
    • Voyages between Norway Iceland and other third countries are also outside the scope of the regulation.
  3. Uncertainty in Future Implementation
    • The timeline for the full application of FuelEU in Norway and Iceland is unclear. Updates are awaited from authorities such as Lloyd’s Register.

Impact on Maritime Operations

  1. Regulatory Complexity
    • Maritime operators navigating between the EU, Norway, and Iceland will need to track compliance requirements for different voyage segments.
    • Dual compliance with FuelEU and any future local regulations in Norway and Iceland will increase administrative and operational burdens.
  2. Competitive Dynamics
    • The exclusion of domestic voyages in Norway and Iceland from FuelEU provides their operators with a competitive advantage for these routes due to reduced regulatory costs.
    • For EU-bound voyages, partial inclusion might encourage Norwegian and Icelandic operators to transition to cleaner energy solutions.
  3. Exemptions for Specific Routes and Ports
    • Islands with small populations (<200,000) and certain passenger routes under public service obligations may benefit from exemptions, reducing compliance costs for operators serving these areas.

Broader Industry Impacts

  1. Sustainability Goals
    • While FuelEU drives decarbonization in EU-related voyages, Norway and Iceland’s exclusion for certain routes may delay achieving cohesive emission reductions across EEA countries.
  2. Investment in Cleaner Technologies
    • Operators might invest selectively in greener technologies for FuelEU-covered routes, potentially slowing the adoption of clean technologies for domestic and non-EU routes.

Key Points Moving Forward

  • Updates regarding FuelEU’s application to Norway and Iceland are expected from regulatory bodies such as Lloyd’s Register.
  • Exemptions under FuelEU Maritime for certain EU ports, islands, and passenger ships are limited to December 31, 2029, potentially altering operational planning for operators in the region.

Action Items for Stakeholders

  1. Monitor announcements from DG MOVE, the Norwegian Maritime Authority, and Lloyd’s Register for regulatory updates.
  2. Evaluate energy use on voyages for compliance with FuelEU where applicable.
  3. Consider strategic investments in low-carbon technologies to align with long-term decarbonization trends.

Did you subscribe to our daily Newsletter?

It’s Free Click here to Subscribe!

Source: Lloyd Register