The FuelEU Maritime Regulation Faces Delays in Norway and Iceland

The FuelEU Maritime regulation, set to enter force on January 1, 2025, will face delays in its application to Norway and Iceland due to its postponed incorporation into the European Economic Area (EEA) Agreement, the UK-based classification society Lloyd’s Register (LR) revealed.

The Norwegian Maritime Authority (NMA) explained that this delay occurred due to the ‘convoluted’ nature of the EEA process, which involves multiple steps. Norway is working to expedite the EEA Joint Committee’s decision.

“We have worked hard to ensure the new legislation enters into force in Norway on 1 January 2025. The Norwegian legislation is ready to be adopted but can only take effect following a decision by the EEA Joint Committee,” said Alf Tore Sørheim, Interim Director General of Shipping and Navigation.

The Norwegian Maritime Authority has urged all shipping companies covered by this legislation to adhere to the EU deadlines for creating a FuelEU monitoring plan. Despite the delay, the NMA recommends that all ship owners and operators prepare ‘ahead of time’, before the regulation is officially implemented in the country.

As a result of the postponement, all ports in Norway and Iceland will be considered third-country ports in a FuelEU context from January 1, 2025, until the incorporation into the EEA Agreement, the NMA stated.

“During this period, only half of the energy consumed between a port of call in Norway or Iceland and a port of call in the EU will fall under the scope of FuelEU. Energy consumed on voyages within Norway or between Norway and non-EU countries during this period will remain outside the scope of FuelEU,” Marte Hustveit Hauge, Senior Adviser at NMA, explained.

LR mentioned that FuelEU Maritime allows exemptions for certain routes and ports for passenger ships traveling between ports on islands with fewer than 200,000 inhabitants within a Member State. Passenger ships with public service obligations on specific routes between mainland and island ports can also be exempted.

With the regulation nearing implementation, Norway’s classification society DNV highlighted the challenges of FuelEU Maritime and provided recommendations for compliance in its whitepaper “FuelEU Maritime – Requirements, compliance strategies, and commercial impacts”.

DNV emphasized the importance of compliance and suggested strategies for shipowners to navigate the new regulations effectively. Actions to reduce compliance costs were identified, such as utilizing LNG and bio-LNG as a cost-effective compliance strategy.

DNV recommended that shipowners prepare their organization and fleet for FuelEU Maritime, secure long-term fuel agreements, implement energy-efficiency measures, and include provisions for FuelEU Maritime in contractual terms.

Summary

Despite delays in Norway and Iceland, the FuelEU Maritime regulation is set to bring significant changes to the maritime industry. Shipowners are advised to prepare for compliance and explore cost-effective strategies to meet the new requirements.