This warning comes ahead of the 31st August deadline for shipping companies to prepare and submit their FuelEU Maritime Monitoring Plans
EmissionLink, member of Columbia Group, says there are concems that while industry leaders are investing in low-carbon technologies, optimising their operations, and ensuring compliance strategies are in place, some companies, particularly smaller operators, are clinging to outdated practices and also face limited resources, lacking the expertise and financial capability to understand the compliance and submit their plans
“A significant number of shipowners and operators have yet to submit their FuetEU Monitoring Plans, citing complexity of the compliance and the lack of clear guidance and inconsistent support from regulators about the correct steps to take,” warned Philippos loulianou, Columbia Group Director of Energy and Renewables
“Although there is some leeway to do this by the start of next year, we expect there to be a huge rush later in the year, so the earlier companies get their plans submitted and verified, the better
Columbia Group is an active member of ship management trade association InterManager and, on behalf of its members, InterManager has taken part in extensive discussion with the EU in relation to FuelEU and EU-ETS
InterManager members have stressed to the EU the need for it to employ a ‘polluter pays approach to environmental legislation. The association points out that, in effect, ship managers are the facility managers and not the factory owners
Ship managers are not responsible for decisions in relation to the origin of the fuel, its supply. or procurement decisions, or the technical specification of the ships they manage. Columbia says
However, they are responsible for checking that the fuel delivered to the vessels conforms to the specifications ordered by owners or charterers and are also responsible for ensuring the fuel is handled properly onboard the vessel and, where different qualities are on the vessel, for ensuring the right fuel is burned at the right times. This is in line with the obligations placed on ship managers under the ISM Code
Ship managers are therefore also concemed that the proposed FuelEU legislation makes them the responsible party and have warned that, as the ruleset currently stands, there is a high risk of litigation once the scheme is implemented.
To help ship owners and operators navigate the challenges posed by the new FuelEU Maritime Regulation, EmissionLink was launched by Columbia Group as a one-stop shop platform using Al to streamline processes and ensure compliance with the evolving regulatory landscape including FuelEU requirements and the EU Emissions Trading Scheme (ETSI
The platform offers transparency in managing the fuel life cycle and helps companies collect clean, analyse, and forecast emissions data so clients can create long-term green strategies and reduce their emissions.
The FuelEU Maritime Regulation, a key component of the EU’s “Fit for 55” package, is set to reshape the shipping industry by enforcing strict greenhouse gas (GHG) intensity reductions Starting in January 2025, all ships of 5.000 gross tonnage (GT) and above will be required to significantly lower their GHG emissions, with incremental targets leading to an 80% reduction by 2050.
The regulation requires companies to submit detailed Monitoring Plans that outline how they will measure and report their GHG intensity. This includes tracking 100% of energy used on voyages between EU ports and 50% on voyages between EU and non-EU ports. Failure to comply by the deadline could result in severe financial penalties and operational setbacks. putting lagging companies at a significant disadvantage
“The FuelEU Maritime Regulation creates new challenges that require foresight and agility and shipowners must be ready to steer through the challenges ahead,” said Mr loulianou. “Non- compliance isn’t just a financial risk-it’s a strategic risk. As the industry moves toward greener practices those who lag behind will find it harder to compete, not just in terms of meeting regulations, but in maintaining market share”
For companies struggling or looking for a company to enable them to meet the FuelEU requirements. EmissionLink offers A to Z services to address all the challenges such as essential support, providing a deep understanding of the regulatory landscape, expertise in emissions monitoring, data management and decarbonisation solutions.
“EmissionLink is here to ensure that no company, regardless of size, is left behind.” said Mr Joulianou. “We provide the tools and expertise needed to develop, submit, and approve Monitoring Plans, ensuring compliance with the FuelEU Maritime Regulation and helping companies stay competitive in a rapidly changing market
Source: EmissionLink Columbia Group
