EU green rules will aim lower than IMO’s, but hit harder
- Higher FuelEU penalty improves case for low-emission technology where it applies
- FuelEU Maritime cost equivalent to about $690 per tonne of CO2 equivalent
- Funds may flow to Europe if the IMO does not restrict EU access to ZNZ reward
Adding the EU’s green rules on top of the global Net-Zero Framework tax will improve the business case for green fuels for ships trading with Europe. But it could also lead to awkward political outcomes