Dear Full Members of INTERCARGO,
You may find here below a summary of latest EU developments and the EU Fit 55 Policy Package.
A brief containing more details is also available below.
EU ETS
The texts of the EU ETS and the EU MRV were adopted on the 9th of February by the Environment Committee of the Parliament. More information can be found in our website here.
FUEL EU MARITIME
Background
FuelEU Maritime is the EU’s strategy to phase out fossil fuels from shipping and boost the uptake of alternative fuels in the sector. The proposed regulation introduces increasingly stringent limits on carbon intensity of the energy used by vessels from 2025, which should oblige them to use alternative fuels.
Summary of Developments
The EU Parliament and the Council reached a provisional agreement on FuelEU Maritime. It applies to commercial vessels of 5 000 gross tonnes and above, regardless of their flag and introduces greenhouse gas intensity limits of energy used on-board by a ship of 2% from 1 January 2025 and 6% from 1 January 2030. It is also noted that fuel suppliers are included in the article on the penalties. The Revenues generated from the penalties under the FuelEU regulation will be allocated to projects to support decarbonisation of the maritime sector.
Next steps:
The agreement will need to be approved first by the Council Committee of Permanent Representatives and the Parliament’s Transport and Tourism Committee, and then by the Parliament’s plenary and the Council.
RENEWABLE ENERGY DIRECTIVE(RED III)
Background
The EU renewable energy directive (RED) was adopted in 2009 to deliver a minimum 20 % share of renewable energy sources (RES) in EU final energy consumption by 2020, and the ‘fit for 55’ package adopted by the European Commission on 14 July 2021 included a significant revision of the RED.
Summary of Developments
The Council and the Parliament reached a provisional political agreement on the Renewable Energy Directive (RED III). Members may note that the outcome of the provisional agreement on RED III shows that the EU is putting the emphasis on RFNBOs, including a binding combined sub-target of 5.5% for advanced biofuels (generally derived from non-food-based feedstocks) and renewable fuels of non-biological origin (RFNBOs – mostly renewable hydrogen and hydrogen-based synthetic fuels) in the share of renewable energies supplied to the transport sector and a minimum requirement of 1% of RFNBOs in the share of renewable energies supplied to the transport sector in 2030.
Next steps
The proposal will eventually move to the European Parliament and the Council for discussion.
ALTERNATIVE FUELS INFRASTRUCTURE REGULATION (AFIR)
Background
The 2014 Alternative Fuels Infrastructure Directive required EU countries to develop national policy frameworks (NPFs) for developing publicly available refueling and recharging points for alternative fuel vehicles and vessels. The Fit for 55 package included the proposal to revise the 2014 Directive on alternative fuels infrastructure. The initial text includes provisions for Member States to ensure installation of a minimum shore-side electricity supply for certain seagoing ships(seagoing container and passenger ships) in maritime ports and for inland waterway vessels and to ensure an appropriate number of LNG refuelling points in maritime TEN-T ports and to identify relevant ports through their national policy frameworks.
Summary of Developments
The Parliament and the Council reached a provisional agreement on the Alternative Fuels Infrastructure Regulation (AFIR) and provisions regarding on-shore power supply in maritime ports are now fully consistent with the FuelEU Maritime proposal.
Next steps:
The proposal will eventually move to the European Parliament and the Council for discussion.
NET-ZERO INDUSTRY ACT
Background
The ‘Green Deal industrial plan for the net-zero age’ sets out a European approach to boost the EU’s net-zero industry.
Summary of Developments
On 16 March, the Commission published its proposal for a Net-Zero Industry Act, the first legislative proposal implementing the Green Deal Industrial Plan published in February.
The Act identifies a number of “strategic net-zero technologies” for which, by 2030, manufacturing capacity need to approach or reach “a benchmark of at least 40% of the Union’s annual deployment needs for the corresponding technologies necessary to achieve the Union’s 2030 climate and energy targets”. The below technologies are identified:
- offshore renewables, batteries, sustainable biogas/biomethane
- Carbon Capture and Storage.
- renewable fuels of non-biological origin technologies
- sustainable alternative fuels technologies
Next Steps
The proposal will now move to the European Parliament and the Council for discussion. This Regulation shall be binding in its entirety and directly applicable in all Member States.
ENVIRONMENTAL CRIME DIRECTIVE
Background
The Directive aims to crack down on environmental crime, fulfilling a key commitment of the European Green Deal.
The EU Council, general approach was adopted on 9 December and maintains the Commission proposal regarding the shipping sector interest and ship recycling continues to be considered a criminal offense when the activity is completed in a yard not included in the EU list.
Summary of Developments
European Parliament’s Legal Affairs Committee adopted its position on the update of EU rules on environmental crimes. The updated list of environmental crimes punishable at EU level would now include in the scope of the Directive offenses deriving from ship source pollution, ship recycling and shipment of waste.
Next Steps
The report following a vote will become Parliament’s position for the negotiations with the Council.
EU TAXONOMY
Background
The proposal sets out uniform criteria for determining whether an economic activity is environmentally sustainable and sets out a process involving a multi-stakeholder platform to establish a unified EU classification system (EU taxonomy) based on a set of specific criteria, in order to determine which economic activities are considered sustainable.
Summary of Developments
The European Commission is in the process of finalizing the draft proposal of their second environmental delegated act related to the EU Taxonomy Regulation.
- This second environmental delegated act adds transitional criteria for maritime shipping for after 2025.
- The second delegated act is not covering pollution prevention for the maritime industry.
- Vessels dedicated to the transport of fossil fuels are still excluded.
- With regards to the technical screening criteria in order that vessels are considered suitable as per the “manufacture, repair, maintenance retrofitting, repurposing and upgrade” of vessels and activities the draft text includes additional criteria
Next Steps
Currently, the Commission is discussing the draft proposal with EU Member States.
