European shipping companies now face a more defined framework for complying with emissions requirements under the FuelEU Maritime regulation. DNV, as an accredited verifier, has confirmed the operational details of the flexibility mechanisms allowed to achieve compliance with greenhouse gas limits under Regulation 2023/1805.
FuelEU Maritime’s strategies for achieving compliance
The regulation allows shipping companies to adopt three alternatives: accumulation of compliance balance, inter-annual loans and pooling of vessels. These measures seek to optimize annual compliance with GHG intensity targets without resorting directly to the payment of penalties.
Ships in surplus can accumulate credits for future years, provided the ship continues to operate within the EEA area. In case of negative results, companies can borrow up to 2 % of the annual GHG target, subject to a 10 % surcharge the following year.
An additional option is the pooling of funds between vessels, even between different companies. The strategy makes it possible to offset surpluses and deficits jointly. However, each pool must be validated by all parties involved and verified by entities such as DNV before April 30 each year.
The total compliance balance of the group must be equal to or greater than zero. Allocation principles prevent a vessel from entering the fund and ending up with a larger deficit or a vessel with a surplus from ending up with a negative result.
The annual process begins with the submission of the FuelEU report by January 31. Thereafter, the verifier must register and validate the data in the THETIS-MRV system by April 30, including the use of any flexibility mechanisms.
Each vessel must obtain a Document of Compliance to avoid penalties that can amount to up to 2400 euros per ton of VLSFO equivalent of non-compliant VLSFO. Pool and individual vessel verification is mandatory, even if they have participated in pools.
Source and photo: DNV