Classification society DNV on Thursday (5 September) has unveiled an upgrade to its emissions data verification and data management platform, Emissions Connect, which will enable the maritime sector to handle the commercial challenges and risks that come with the implementation of FuelEU Maritime. 

The update comes at a crucial time as the industry is grappling with the requirements that take effect from 1 January 2025.

Emissions Connect was first launched in 2023 to support the industry with the operational impact of multiple regulatory requirements and decarbonization trajectories. Specifically it helps the industry manage and control Carbon Intensity Indicator (CII) performance, manage the commercial obligations arising from the European Union’s (EU’s) Emissions Trading System (ETS) and now also the implicatons of FuelEU Maritime.

Pål Lande, Product Line Director, DNV Maritime, said: “The introduction of new regulation to drive decarbonization is creating a complex environment for organizations across the shipping sector. To assist companies in dealing with this change, we are pleased to be offering a solution that will help them manage the commercial impact of these new rules and collaborate across the supply chain. Accurate and verified data is crucial to instil trust and ensure effective collaboration within this complex environment.” 

FuelEU Maritime sets limits on the greenhouse gas (GHG) intensity of fuels used by ships calling at EU ports and progressively reduces these levels towards 2050. 

The regulation covers well-to-wake emissions from the entire fuel life cycle and requires ship managers to submit a monitoring plan, report emissions data annually and have their compliance balance verified. GHG intensity which is too high can lead to a negative balance, which, if not compensated in a pool with other ships, will trigger a penalty that the shipping company must pay to the national authorities.

To manage these challenges, the new update allows users to:

• Gain an overview of the GHG intensity of vessels in a fleet, the cumulative compliance balance and penalty cost per vessel, where applicable
• Evaluate different vessel pool set-ups by creating different fleets to explore the most suitable options for FuelEU Maritime management
• Track an individual ship’s performance by viewing basic vessel data, information on the GHG intensity of energy within the scope of FuelEU Maritime, and the compliance balance and corresponding penalty cost, if applicable
• Create verified emissions statements on voyage and custom period level

Built on the Veracity Data Workbench that supports customers with a strong emissions data management solution, Emissions Connect offers a high-quality emissions data baseline that is digitally verified.

High-quality emissions data provided by the shipowner is verified by DNV and shared with customers for self-service in settlement of transactions or other purposes such as reporting, exporting and secure sharing with partners and third parties, including banks and insurance companies adhering to the Poseidon Principles.

Note: Read more about Emissions connect here.

Photo credit: DNV
Published: 6 September, 2024

EmissionLink, a member of Columbia Group, on Friday (30 August) said industry leaders are rapidly positioning themselves to thrive under the upcoming FuelEU Maritime Regulation, while smaller companies risk falling behind, facing steep penalties and potential loss of market share.

This warning comes ahead of the 31 August deadline for shipping companies to prepare and submit their FuelEU Maritime Monitoring Plans.

EmissionLink said there are concerns 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 FuelEU 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 Ioulianou, 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 concerned 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 AI to streamline processes and ensure compliance with the evolving regulatory landscape including FuelEU requirements and the EU Emissions Trading Scheme (ETS).

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 Ioulianou. “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.”

Photo credit: william william on Unsplash
Published: 2 September, 2024

Classification society ClassNK on Wednesday (28 August) said it has released its third edition of FAQs on the FuelEU Maritime.

FuelEU Maritime, an EU regulation aimed at promoting the decarbonisation of fuels used on board ships, has entered into force and will apply to all ships above 5,000 gross tonnage calling at EU ports from January 1, 2025.

In this edition, ClassNK highlighted preparation of the FuelEU Monitoring Plan and the benefits from the use of biofuels on international voyages between an EU port and a non-EU port.

ClassNK also answered on how to calculate greenhouse gas (GHG) intensity when biofuels are used.

Note: The third edition of FAQs on the FuelEU Maritime is available here.

Photo credit: ClassNK
Published: 29 August, 2024