European Union Confirms World’s First Green Shipping Fuels Law

The European Union (EU) passed the world’s first green transportation fuel law, according to which vessels will be required to use more sustainable fuels, with at least 2% of the bloc’s shipping fuels will need to come from e-fuels derived from renewable electricity by 2034 at the latest.

With negotiations at the International Maritime Organization (IMO) running, the European Federation for Transport and Environment, commonly referred to as Transport & Environment (T&E) believes this signals the beginning of the end for dirty shipping fuels and should become a motivation for other countries around the globe.

“Today’s decision marks the beginning of the end of dirty fuels in shipping. The EU is charting the way with the most ambitious package of green shipping laws ever adopted. This success should inspire other countries to do the same,” stated Delphine Gozillon, sustainable shipping officer at T&E.

The EU’s FuelEU Maritime law was agreed upon on 22 March by all the EU bodies and member states.

T&E said e-fuels are one of the only options shipping has to decarbonise, where direct electrification for many vessels is not possible. However, the group warns that loopholes risk letting biofuels and low-carbon fuels in the backdoor.

T&E has called on the European Union to fix these when it revises the law by 2028. Transport & Environment noted that the final deal also contains stricter greenhouse gas intensity goals, as well as a bonus for using green e-fuels until 2035, known as the “multiplier of two.” This should make e-fuels more appealing to use once the rule goes into effect in 2025.