European Parliament votes for tighter emissions rules for marine fuels from 2035

EU lawmakers have voted to tighten emissions regulation for marine fuels from what the European Commission proposed, in a bid to accelerate the usage of alternative fuels for the bloc's climate goals.

In a plenary vote Oct. 19, members of the European Parliament agreed to lower the greenhouse gas intensity of bunker fuels used by ships at EU ports in the coming decades, with 451 votes for, 137 against, and 54 abstentions.

The lawmakers' version of FuelEU Maritime requires a 2% reduction from 2025 against 2020 levels, then 6% from 2030, 20% from 2035, 38% from 2040, 64% from 2045, and 80% from 2050.

"This will force the vessel operators to gradually reduce the climate impact of the fuels," said Jorgen Warborn, an MEP and the Parliament's rapporteur on sustainable maritime fuels, adding that the regulation provides "by far the world's most ambitious pathway to maritime decarbonization".

In July 2021, the European Commission, the EU's executive arm, proposed the same targets for 2025 and 2030 but 13% for 2035, 26% for 2040, 59% for 2045, and 75% for 2050.

Based on the current proposals, ship operators were expected to use more biofuels or LNG to meet targets for 2025 and 2030 before shifting to carbon-neutral fuels for the later requirements.

Delphine Gozillon, sustainable shipping officer at Brussels-based nonprofit Transport & Environment, said the regulatory development represented "the beginning of the end for fossil fuels in Europe's shipping industry."

"There is no long-term future for fossil LNG in shipping," Gozillon added.

While LNG has emerged as the top alternative to oil-based fuels for vessels, industry estimates suggest it can achieve just 20%-30% decarbonization effects.

The EU has aimed to cut emissions by 55% from 1990 levels by 2030 and net-zero emissions by 2050.

In their reference case, analysts at S&P Global Commodity Insights expect LNG to make up 12% of global bunker consumption and low, zero-carbon fuels 14% in 2050.

Renewables boost

The EC and Parliament both agreed the regulation will apply to ships of 5,000 gross tons or more and take into account 100% emissions in intra-EU trade and 50% emissions from voyages where either the departure or arrival port is outside of the bloc.

But MEPs added a target of 2% of renewable fuels of non-biological origin usage by vessels and mandated containerships and passenger ships to use onshore power supply while at berth at main EU ports from 2030.

That followed a plenary vote Sept. 14 on the Renewable Energy Directive II, a separate set of rules. MEPs then agreed to mandate fuel suppliers in Europe to deliver 1.2% of all transportation fuels to the shipping industry in the form of RFNBOs from 2030.

The Parliament also voted for other measures to decarbonize transportation on Oct. 19.

In a separate plenary vote, MEPs agreed to improve alternative fuels infrastructure for the road, aviation and maritime sectors, with a particular focus on areas covered by the Trans-European Transport Network, also known as TEN-T.

Among the proposed measures, at least one charging pool should be set up for cars every 60 km among main EU roads by 2025. The same would apply for trucks and buses on core TEN-T locations.

MEPs also suggested one hydrogen refueling station every 100 km among main EU roads by 2028. The Commission had proposed one station every 150 km by 2031.

Ismail Ertug, an MEP and the Parliament's rapporteur on alternative fuels infrastructure, said the current 377,000 charging stations in the EU are "half the amount that should have been achieved had EU countries lived up to their promises."

"We need to tackle this decarbonization bottleneck and quickly roll out the alternative fuels infrastructure," Ertug said.

The Commission, MEPs and the EU member states will iron out the final details of FuelEU Maritime. RED II, and alternative fuels infrastructure rules via trilogue talks in coming months.