Preparing for FuelEU Maritime - September 2024

MSC remains committed to its goal of net zero decarbonization across its ocean fleet by 2050. Today, we continue to make progress towards that goal through substantial fleet investments and our robust newbuilding programme including more than 125 dual fuel LNG vessels. All to ensure we are ready to operate on net-zero fuels when they become available at scale.

MSC also recognizes the importance of decarbonizing global supply chains with environmental regulation that provides owners/operators the optionality to comply through measures such as vessel pooling. The European Union (EU) FuelEU Maritime Regulation that will become effective 1 January 2025 is part of this regulatory change. The purpose of this customer advisory is to update you on how these changes will impact on our operations, the services we provide, and what this means for our customers.

What is FuelEU
FuelEU Maritime was adopted by the European Commission with the aim of promoting the use and adoption of cleaner fuels for vessels calling at ports in EU/EEA countries, ultimately incentivizing a cleaner fleet profile for the EU. The regulation is part of the EU’s wider Fit-For-55 package aimed at reducing GHG emissions by at least 55% by 2030. The emissions scope of the regulation will cover CO2 in addition to methane and nitrous oxide emissions over a full Well-to-Wake lifecycle for the fuels used onboard.

FuelEU Maritime sets a maximum limit for the yearly average greenhouse gas (GHG) intensity of the energy used by ships calling at European ports regardless of their flag state. The GHG reduction targets will be incremental over time with a 2% decrease aimed by 2025 and reaching up to an 80% reduction by 2050. For further information please see our introductory presentation here.

How MSC will Respond
As a result of the implementation of FuelEU there will be higher operating costs to ensure compliance with the requirement to use cleaner fuels. Customers will contribute to the additional cost of complying with FuelEU Maritime across the supply chain as they do for other forms of regulation such as IMO 2020 and EU ETS. This will result in an additional emissions surcharge for customers.

We will ensure you remain updated on further developments concerning the implementation of FuelEU Maritime effective 1 January 2025, and its impact on our operations and the services we provide.

For additional details on the FuelEU Maritime regulation please see the dedicated page on the European Commission website.