Wednesday 11 September 2024

‘New law to cost shipping companies €175m’

New analysis indicates that Greek shipping companies could face €175 million in penalties under the FuelEU Maritime rules once they come into effect next year

The FuelEU Maritime regulation, set to be implement from 2025 to increase the share of renewable in shipping could cost Greek shipping companies €175 million (£147 million) in penalties.

According to data solutions provider OceanScore, oil tankers, RoPax - which is a combination of a cruise ship and night cabins with a roll-on/roll-off ferry, cargo ships and containership segments would be hardest hit.

The report suggests the largest company is expected to face the highest overall penalty of €11.75 million (£9.9 million) and the average per-vessel penalty is €309,200 (£260,715).

OceanScore’s Co-Managing Director, Ralf Garrn said: 'This should only be considered the starting point for Greek shipping and not the final scenario as much will depend on how companies take advantage of biofuels, low-carbon technologies and the FuelEU pooling mechanism to minimise their exposure.

'Vessels with a very high penalty structure will also gain the greatest beneficial effects from fuel switching with biofuels to reduce their penalties and can even convert these into opportunities by creating compliance surpluses that can generate revenue through pooling.'

Experts note that switching to biofuels could help companies save on the FuelEU penalty and scale down their reliance on purchasing carbon credits.