The European Union is going to implement its second major regulation for decarbonizing shipping: FuelEU Maritime. This regulation aims to promote the use and production of sustainable fuels, reports Container News.
Increasing Penalties
Companies that exceed the permitted greenhouse gas intensities for their vessels will face increasing penalties in the coming years. None of the traditional fossil fuels meet the regulation’s requirements, leaving companies to choose their compliance strategies.
“Some players in our industry are currently giving the impression that pooling is the best way to achieve FuelEU compliance. This is far too short-sighted and does not do justice to the complexity of FuelEU Maritime and the volatility of the market environment. Instead, the goal must be for every shipping company, every ship manager and every charterer to have a full overview of all economic parameters at all times. Only on this basis can truly inform decisions be made – and whether these ultimately fall in favor of pooling, penalty payments or another method will always change depending on the context,” stated Friederike Hesse, Co-Founder and Managing Director of zero44.
These options include pooling vessels to achieve collective greenhouse gas targets, borrowing future compliance credits, or banking deficits to carry forward into the next year. Companies can also integrate biofuels into their fuel mix or simply pay the penalties, potentially passing these costs onto charterers and customers.
Software Solution
To help navigate these complexities, zero44 has launched a new software solution that provides full transparency and identifies the most economically viable compliance options. The software assists ship owners, managers, and charterers in finding the optimal strategy for FuelEU Maritime, either on its own or in combination with zero44’s tools for EU ETS and CII compliance.
By using historical ship performance data and machine learning, the software predicts future consumption and emissions, allowing users to compare penalties, biofuel costs, pooling options, and other alternatives. Zero44 also offers a pooling marketplace for its customers and third parties.
The product, developed with feedback from several customers including MPC Container Ships, Minship Shipmanagement, and Union Bulk, is designed to make compliance with the new regulation as straightforward as possible.
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Source: ContainerNews
