’Fit for 55’ is the catchphrase for the EU’s commitment to decarbonise shipping by poking it with a trident of requirements. Siglar Carbon has introduced a tool to help the tanker industry assess the impact
The EU has set an absolute limit to achieve climate neutrality by 2050 with the commitment to amend climate, energy and transport legislation with a 55% cut in emissions by 2030 (aka ’Fit for 55’).
For shipping, this requirement will be met by the EU imposing a greenhouse gas intensity limit on ship energy usage (FuelEU Maritime initiative), a minimum tax on bunker fuels (Energy Taxation Directive) and a requirement to pay for shipping emissions in the emissions trading system (ETS) from 2023, with a full phase-in by 2026.
The aim of the FuelEU Maritime initiative is to create a level playing field for alternative fuels by addressing barriers to use and removing technical uncertainties to increase the penetration of low carbon alternatives into the marketplace.
The aim of the Energy Taxation Directive is to align taxation of all energy forms. This will include removing heavy fuel exemption from energy tax. The proposal is for a €0.9 per gigajoule (approximately US$45 per tonne of heavy fuel oil) from 2023 and this will include LPG and LNG, but at lower levels.
Shipping’s entry into the ETS will be for shipping companies to purchase ETS allowances for each tonne of CO2 emitted from ships operating between EU ports and at berth in EU ports, and 50% of CO2 emissions from both incoming and outgoing global EU voyages.
A Norwegian company, Siglar Carbon, aims to help companies tackle these complexities by introducing a free carbon estimator for tankers. The Carbon Estimator allows users to predict and evaluate carbon emissions from tanker voyages, and offers a new way for charterers, brokers and owners to charter ships based on the expected environmental footprint (see free sign up).
Are you Fit for 55 ready? Find out more at the live Tanker Shipping & Trade Conference, Awards & Exhibition in Athens 2-3 November 2021.
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