DNV Highlights Strategies to Reduce Compliance Costs Under FuelEU Maritime Regulations

DNV Highlights Strategies to Reduce Compliance Costs Under FuelEU Maritime Regulations

(IN BRIEF) DNV’s latest white paper provides shipowners with strategies to navigate the FuelEU Maritime regulations taking effect in January 2025, which mandate strict GHG emission intensity limits for ships over 5,000 GT in the EU/EEA. The rules account for emissions from fuel production to use and offer credits for wind-assisted propulsion. The paper highlights cost-saving measures, including energy efficiency upgrades, long-term fuel agreements, and pooling to share costs. By implementing optimized strategies, shipowners can save up to 16% (USD 21 million) over a vessel’s lifetime. With similar global regulations from the IMO expected by 2027, DNV emphasizes early preparation and the importance of verified emissions data for operational and commercial integrity.

(PRESS RELEASE) BÆRUM, 5-Dec-2024 — /EuropaWire/ — A newly released white paper from DNV outlines the challenges and cost-saving strategies for shipowners preparing to comply with the upcoming FuelEU Maritime regulations, which take effect on January 1, 2025. These regulations introduce strict greenhouse gas (GHG) emission intensity requirements for commercial ships over 5,000 gross tonnage (GT) operating within the EU/EEA.

Comprehensive Emissions Calculations and New Compliance Framework

The FuelEU Maritime rules calculate GHG emissions using a well-to-wake approach, encompassing not only onboard fuel combustion but also emissions from fuel production, extraction, and transport. Innovative provisions, such as crediting ships utilizing wind-assisted propulsion, aim to encourage greener practices.

DNV’s white paper provides shipowners with detailed guidance on these requirements, showcasing how cost-effective compliance strategies can help avoid steep penalties. One case study demonstrates that applying optimized strategies could yield savings of up to 16%, or USD 21 million, over a vessel’s lifetime compared to traditional biofuel options.

Strategic Recommendations for Shipowners

To reduce costs and maintain compliance, DNV recommends several actionable measures:

• Securing long-term fuel agreements to mitigate price volatility.
• Implementing energy efficiency measures to reduce overall emissions.
• Exploring cost-sharing mechanisms like pooling.
• Leveraging digital tools to monitor and verify emissions data for operational and commercial integrity.

DNV Maritime CEO Knut Ørbeck-Nilssen stressed the importance of early action, stating:
“Understanding the FuelEU Maritime requirements and adopting cost-efficient strategies will help shipowners meet regulations while minimizing expenses. Verified emissions data will also play a crucial role in maintaining operational and commercial integrity across the maritime value chain.”

Future Regulatory Landscape

The white paper also underscores the urgency of preparing for similar global regulations expected from the International Maritime Organization (IMO). A net-zero emissions framework is anticipated to be adopted in late 2025, coming into effect around mid-2027.

By offering clear insights and actionable strategies, DNV aims to help maritime stakeholders navigate the complexities of compliance and contribute to the sector’s decarbonization efforts.

Media Contact:

Margrethe Andersen
Head of External Communications, Maritime
margrethe.andersen@dnv.com

SOURCE: DNV