Dear Members,
You may find here below a summary of latest EU developments and the EU Fit 55 Policy Package.
Summary of developments in EU and the EU Fit for 55 policy package- January/March 2024
EU ETS
The Commission Implementing Decision (EU) 2024/411 including the list of administering authorities in respect of shipping companies was published.
- DG CLIMA has received many questions on the possibility for the shipowner to authorise the bareboat charterer, via a contract, to become the responsible entity for MRV and ETS compliance purposes and will clarify the FAQs to make it clearer.
INNOVATION FUND
The deadline to submit a project proposal is 9 April 2024. The evaluation of the projects will take place between April and October 2024.
FUEL EU MARITIME
FuelEU Maritime Regulation will apply from 1 January 2025 and promotes the use of renewable and low-carbon fuels in maritime transport for ships above 5000 GT, intra-EU traffic + 50% international, EU ports (same as for ETS).
- Additional delegated and implementing acts will be prepared to implement the regulation.
- The publication of the FAQs on FuelEU Maritime is expected to take place mid-April.
WASTE SHIPMENT REGULATION
A provisional agreement on the revision of the waste shipment regulation was reached. The revised waste shipment regulation amends the EU Ship Recycling Regulation to clarify the legal framework applicable to the recycling of EU flagged ships.
- Ships can be recycled in recycling facilities located outside the OECD, if they meet the requirements of the EU SRR and are added to the EU list.
SCHENGEN BORDERS CODE
The Council and the Parliament have reached a provisional agreement to update the Schengen Borders Code, which include the rules governing border control of persons crossing the external EU borders of the EU Member States.
- Seafarers have been classified as essential workers, and have been included in the list of exemptions from entry restrictions to the EU in case of the large-scale health emergency situations.
- Adoption expected in June 2024
CORPORATE SUSTAINABILITY DUE DILIGENCE DIRECTIVE
The Directive will set obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, with respect to their activities in their value chains.
- The law is possible to be finalised by June 2024.
MARITIME SAFETY PACKAGE
The Council and the Parliament reached a provisional agreement that will need to be formally adopted by the Parliament and the Council before being published in the EU Official Journal.
- CII in the ship risk profile was not included and the Commission shall assess its suitability after IMO has concluded the revision of its carbon intensity indicator (CII).
- The HKC is added to the list of parameters of the ship risk profile.
- Electronic certificates are not included in the list of parameters of the ship risk profile
NET ZERO INDUSTRY ACT (NZIA)
The NZIA aims to establish a framework of measures for strengthening Europe’s net-zero technology products deployment and manufacturing capacity.
RENEWABLE ENERGY DIRECTIVE
The directive is introducing a combined energy-based target for advanced biofuels and biogas and renewable fuels of non-biological origin, including a minimum share for renewable fuels of non-biological origin.
- The Commission is expected to formally approve Annex IX to the Renewable Energy Directive as a delegated act. Through Annex IX the aviation sector will have prioritized access to biofuels vis-à-vis shipping, which is problematic.
- The revised directive will soon be published in the Official Journal of the EU and will enter into force on the 20th day following its publication.
CORPORATE SUSTAINABILITY REPORTING DIRECTIVE (CSRD)
The proposal requires that listed companies should disclose information about the risks and opportunities arising from social and environmental issues to evaluate the green and social sustainability of their activities.
- The new standards were scheduled for adoption on 30 June 2024, but now will be postponed to 30 June 2026.
- The Commission will publish eight sector-specific reporting standards before the new deadline on 30 June 2026.
COMMUNICATION ON THE EU 2040 CLIMATE TARGET
For shipping, reference is made to the “Fit for 55” measures. The accompanying impact assessment indicates that the “higher end of the IMO target range (-80% in 2040 vs 2008)” and the FuelEU Maritime regulation will be the building blocks for the decarbonisation of the sector and is a clear message of support to the IMO process.
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For 2023 “Summary of developments in EU and the EU Fit for 55 policy package” articles please click here.
