Shipowners appreciate the 40% production benchmark for clean shipping fuels in Europe

  • April 29, 2024
  • News

European shipowners have welcomed the addition of clean fuels, such as advanced biofuels and e-fuels, to the list of net-zero technologies approved by the European Parliament under the Net-Zero Industry Act. The new law sets a benchmark for the European Commission and EU member states to align 40% of the deployment needs for clean fuels with production capacity.

A release from the European Community Shipowners’ Associations (ECSA) stated that this is a crucial step to ensure the availability of clean fuels in the shipping market at an affordable price, which is essential for meeting the targets set by the Fuel EU Maritime Regulation.

Sotiris Raptis, ECSA’s secretary-general, emphasized the importance of matching European fuel industrial capacity with the EU targets under the FuelEU Maritime, highlighting the need for immediate action.

With increasing regulatory pressure to decarbonise, including stricter targets set by the International Maritime Organization (IMO) last July, the shipping industry aims to achieve a 20% reduction in emissions by 2030 and net-zero emissions by or around 2050. To meet the anticipated demand of 17 million tonnes of oil equivalent annually by 2030, the maritime sector needs access to 30-40% of the projected worldwide carbon-neutral fuel supply, according to a report by DNV.