THE case for the European Union’s fuel intensity regulation has been set out by its commission amid scrutiny from member states.

FuelEU Maritime, part of the Fit for 55 climate package, would create a minimum gradually increasing level of demand for green fuels.

The European Commission said its goal-based approach had the overwhelming support of stakeholders in public consultations.

“By fixing a target on the greenhouse gas content of the energy used by ships, we allow operators to choose the best technology for their type of vessel and business,” it said in an opening address to the EU Transport Council on December 9, adding the approach required a fair comparison of fuels accounting for all main greenhouse gases, including carbon dioxide, methane, and nitrous oxide.

Providing targets from 2025-2050 would give regulatory certainty so operators could plan their investments.

FuelEU Maritime would, like the EU emissions trading scheme, cover all voyages within the European Economic Area and half of voyages in and out of it.

“It would be difficult for the EU not to take responsibility for at least half of the emissions generated by our trade activity,” the commission said. “We thus leave our counterparts the choice on how to tackle the other half.”

It said its key trading partners had not voiced strong opposition against the plan. It did not think the obligation would divert traffic outside the EU.

“While our initial requirements are mild, later on it is fair to assume that other countries will also implement climate measures. In any event, we have a review clause to reassess the situation.”

FuelEU also imposes onshore power supply requirements for containerships and passengerships.

“We should be mindful of the impact that ships in ports have not only on climate but also on the health of the coastal population,” the commission said. “By placing the requirement only on the most polluting vessels… we believe we struck the right balance.”

Governance of the FuelEU Maritime scheme would be based on the existing monitoring, reporting and verification system, a system that had “proven its merits” and could be refined in the future, and the commission was open to suggestions on how the role of member states could be reinforced.

The commission said it was important to distinguish the role of penalties and sanctions.

“The former represent regularisation fees that are determined on the basis of precise formulas and are harmonised across the EU. Penalties will feed into the innovation fund which can be used to finance green maritime projects. Sanctions are for other violations to be determined case by case by national authorities.”