For shipowners and ship management companies operating on European routes, FuelEU Maritime is now an important part of annual compliance planning.
How does it differ from the EU ETS? Which ships fall within its scope? Can ships continue using conventional fuels and still comply? This article explains the essentials.
01 What does FuelEU Maritime regulate?
FuelEU Maritime is an EU regulation designed to encourage the use of renewable and low-carbon fuels in shipping. It has applied in full since 1 January 2025.
The regulation sets a limit on the annual average greenhouse gas intensity of the energy used on board ships, with progressively stricter requirements.
In simple terms, “greenhouse gas intensity” means the amount of greenhouse gases emitted per unit of energy used. The calculation covers the fuel’s entire life cycle, from production and transport to use on board. It accounts for methane and nitrous oxide as well as carbon dioxide.
Assessing whether a fuel can help a ship meet FuelEU requirements therefore involves reviewing its life-cycle emissions and supporting documentation. Emissions from combustion on board alone are not enough.
02 Which ships are covered?
FuelEU Maritime primarily applies to ships of more than 5,000 GT that call at ports in EU Member States and carry passengers or cargo for commercial purposes, regardless of their flag.
In general, the energy use included in the calculation is:
- Voyages between ports in EU Member States: 100%;
- Voyages between a port in an EU Member State and a port in a third country: 50%;
- Stays in ports in EU Member States: 100%.
For example, a relevant voyage between a Chinese port and an EU port will generally have 50% of its energy use included in the calculation.
The precise scope must also be assessed against the ports, routes, nature of each port call and applicable exemptions.
03 What are the current requirements?
For 2025–2029, the annual average greenhouse gas intensity of energy used on board must be 2% below the regulation’s 2020 reference value. The required reduction rises to 6% from 2030 and increases progressively to 80% by 2050.
The “2% reduction” refers to the greenhouse gas intensity of the energy used. It does not simply mean burning 2% less fuel or reducing a ship’s total annual emissions by 2%.
Shipowners need to assess fuel types, consumption and emission factors, among other data, to determine whether a ship meets the requirements and whether it has a compliance deficit.
04 Must ships switch fuels immediately?
FuelEU Maritime does not require every ship to adopt the same fuel or technology. In addition to the use of qualifying low-carbon fuels, the regulation provides flexible compliance mechanisms:
Pooling
The compliance balances of several ships can be combined in a single pool. Subject to the regulatory requirements, the surplus from some ships can offset the deficits of others.
Banking
A ship may carry forward its compliance surplus for use in subsequent years in accordance with the rules.
Borrowing
Subject to specified conditions and limits, a ship may borrow an advance compliance surplus from the following year to cover a deficit in the current year. The borrowed amount is then deducted in the following year in accordance with the rules.
Each mechanism has its own conditions and restrictions. For ships that continue to use conventional fuels and have a compliance deficit, pooling is one option worth reviewing and assessing in advance. The necessary data reporting, verification and pooling arrangements must still be completed.
05 Is FuelEU compliance still required after buying EUAs?
Yes. The EU ETS and FuelEU Maritime impose different compliance obligations.
The EU ETS puts a price on shipping emissions through an emissions allowance system and requires the responsible entity to surrender EUAs in accordance with the rules. FuelEU Maritime, by contrast, sets requirements for the greenhouse gas intensity of energy used on board.
Buying and surrendering EUAs does not replace FuelEU compliance. Shipowners and ship management companies need to plan for both obligations separately.
06 What preparations can be made now?
As 2026 draws to a close, shipowners and ship management companies are advised to consider the following in advance:
- Compile annual fuel consumption and voyage data, together with supporting documentation, for subsequent verification;
- Make an initial assessment of each ship’s compliance balance to identify any deficit;
- If pooling or another mechanism is needed, compare options early and establish what information is required;
- Assign internal responsibilities and coordinate with the verifier and service providers.
Understanding each ship’s position early leaves more time to compare options, prepare documentation and implement the chosen approach.
Tecway FuelEU compliance support
Tecway provides FuelEU Maritime compliance advice and support with pooling solutions for shipowners and ship management companies.
Sources
1. Regulation (EU) 2023/1805 on FuelEU Maritime.
2. The European Commission’s FuelEU Maritime topic page and official questions and answers.
3. The European Maritime Safety Agency’s (EMSA) introduction to the FuelEU Maritime regulation.
Disclaimer: This article is for general information only. It does not constitute legal advice or compliance advice for a specific ship. Applicability and procedural requirements should be confirmed against the legislation in force, official guidance and the ship’s circumstances.
Tecway Maritime FuelEU Pooling
Tecway Maritime helps shipowners and ship management companies achieve cost-effective compliance through FuelEU pooling.
- We match ships with a compliance surplus with ships that have a deficit, enabling surplus providers to earn revenue and deficit holders to reduce their compliance costs.
- Through pooling, FuelEU compliance costs can be reduced to below 40% of the penalty amount.
About Tecway Maritime
Established in 2016, Tecway Maritime Technology Co., Ltd. is the Tecway Group’s specialist team for green shipping and maritime consultancy services. The Group’s parent company, Tecway International Co., Ltd., was founded in 1993 and has served the global maritime industry for more than three decades.
Tecway Maritime focuses on the core needs of shipping companies making the transition to low-carbon operations. Its services include EU ETS (EUA) and FuelEU compliance consultancy, support for maritime green hydrogen projects, smart ship dry-docking solutions, FGSS services, supply and technical support for the Cylinder Liner Diameter Measurement (CLDM) system, and export solutions for Chinese-manufactured marine equipment. Drawing on its global network across Asia, the Middle East and Europe, Tecway Maritime is committed to reliable, high-quality and sustainable solutions that help shipping companies respond to regulatory change and seize new opportunities in green shipping.
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