What changed between the adopted text of 19 Oct 2022 and the adopted text of 11 Jul 2023

Removed:P9_TA(2022)0367

Added:P9_TA(2023)0262

Changed:Sustainable maritime fuels (FuelEU Maritime Initiative) ***I

Committee on Transport and Tourism

PE729.908

Changed:Amendments adopted by the European Parliament onlegislative 19resolution Octoberof 202211 July 2023 on the proposal for a regulation of the European Parliament and of the Council on the use of renewable and low-carbon fuels in maritime transport and amending Directive 2009/16/EC (COM(2021)0562 – C9-0333/2021 – 2021/0210(COD))

(Ordinary legislative procedure: first reading)

Removed:Recital 1: (1) Maritime transport accounts for around 75% of EU external trade and 31% of EU internal trade in terms of volume. 400 million passengers embark or disembark annually in ports of Member States, including around 14 million on cruise ships. Maritime transport is therefore an essential component of Europe’s transport system and plays a critical role for the European economy. The maritime transport market is subject to strong competition between economic actors in the Union and beyond for which a global level playing field is indispensable. The stability and prosperity of the maritime transport market and its economic actors rely on a clear and harmonised policy framework where maritime transport operators, ports and other actors in the sector can operate on the basis of equal opportunities. Where market distortions occur, they risk putting ship operators or ports at a disadvantage compared to competitors within the maritime transport sector or in other transport sectors. In turn, this can result in a loss of competitiveness of the maritime transport industry, fewer jobs and a loss of connectivity for citizens and businesses.

Change 1

Added:The European Parliament,

Removed:Recital 1 a (new): (1a) The maritime sector employs 2 million Europeans and contributes EUR 149 billion to the economy. For every EUR 1 million generated in the shipping industry, EUR 1,8 million are generated elsewhere in the EU economy.1a / 1a European Community Shipowners’ Association report “The Economic Value of the EU Shipping Industry”, 2020.

Added:– having regard to the Commission proposal to Parliament and the Council (COM(2021)0562),

Removed:Recital 1 b (new): (1b) Maritime transport is the most environmentally friendly transport mode with significantly lower greenhouse gas emissions per tonne of goods transported compared to other modes1a. At the same time, ship traffic to or from ports in the European Economic Area accounts for some 11 % of all EU CO2 emissions from transport and 3 to 4 % of total EU CO2 emissions. CO2 emissions from maritime transport are expected to increase, unless further action is taken. All sectors of the economy must contribute to the swift reduction of GHG emissions towards net-zero GHG emissions by 2050 at the latest as enshrined in Regulation (EU) 2021/1119. It is therefore essential for the Union to set out an ambitious pathway for the swift ecological transition of the maritime sector, which would also contribute to maintaining and further promoting its global leadership in the green technologies, services and solutions, and to further stimulating job creation in the related value chains while retaining competitiveness. / 1a European Environment Agency study, 2020, https://www.eea.europa.eu/publications/rail-and-waterborne-transport

Added:– having regard to Article 294(2) and Article 100(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90333/2021),

Removed:Recital 2: (2) To enhance the Union’s climate commitment under the Paris Agreement and set out the steps to be taken to achieve climate neutrality by 2050 at the latest, and to translate the political commitment into a legal obligation, the Commission adopted the (amended) proposal for a Regulation of the European Parliament and of the Council on establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law)[1]as well as the Communication ‘Stepping up Europe’s 2030 climate ambition’[2].This also integrates the target of reducing greenhouse gas (GHG) emissions by at least 55% compared to 1990 levels by 2030. Accordingly, various complementary policy instruments are needed to promote and speed up a large-scale production and the use of sustainably produced renewable and low-carbon fuels, included in the maritime transport sector, whilst respecting the principle of technological neutrality. The necessary technology development and deployment should be supported as soon as possible and must be under way by 2030 to prepare for much more rapid change thereafter. It is also essential to foster innovation and to support research for emerging and future innovation such as emerging alternative fuels, eco-design, bio based materials, wind propulsion and wind-assisted propulsion.

Added:– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

Removed:Recital 2 a (new): (2a) LNG is likely to play a transitional role in maritime transport, enabling a gradual transition towards zero-emission alternatives, especially where there is currently no economically viable zero-emission powertrain technology available. The Communication on the Smart and Sustainable Mobility Strategy points to zero-emission seagoing ships becoming market ready by 2030. Fleet conversion should take place gradually due to the long lifespan of the ships. Transport fuels such as LNG need increasingly to be decarbonised by blending with liquefied biomethane (bio-LNG) or renewable and low-carbon synthetic gaseous e-fuels (e-gas) for instance.

Added:– having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Seanad Éireann, asserting that the draft legislative act does not comply with the principle of subsidiarity,

Removed:Recital 3: (3) In the context of fuel transition to renewable and low carbon fuels and substitute sources of energy, it is essential to ensure the proper functioning of and fair competition in the EU maritime transport market regarding marine fuels, which account for a substantial share of ship operators’ costs - typically between 35 % and 53 % of shipping freight rates. Policy measures must therefore be cost-effective and aim to generate the largest possible decarbonisation at the lowest possible cost. Differences in fuel requirements across Member States of the Union can significantly affect ship operators’ economic performance and negatively impact competition in the market. Due to the international nature of shipping, ship operators may easily bunker in third countries and carry large amounts of fuel, which could also contribute to a risk of loss of competitiveness of Union ports vis-à-vis non-Union ports. This may lead to carbon leakage and business leakage and detrimental effects on the competitiveness of the sector if the availability of renewable and low carbon fuels in maritime ports under the jurisdiction of a Member State is not accompanied by requirements for their use that apply to all ship operators arriving at and departing from ports under the jurisdiction of Member States. This Regulation should lay down measures to ensure that the penetration of renewable and low-carbon fuels in the marine fuels market takes place under the conditions of fair competition on the EU mari…

Added:– having regard to the opinion of the European Economic and Social Committee of 8 December 2021,

Removed:Recital 3 a (new): (3a) The maritime sector is characterised by fierce international competition. Major differences in regulatory burdens across flag states have exacerbated unwanted practices such as the reflagging of vessels. The sector's intrinsic global character underlines the importance of a flag-neutral approach and of a favourable regulatory environment, which is a precondition for attracting new investment and safeguarding the competitiveness of European ports, ship owners and operators.

Added:– after consulting the Committee of the Regions,

Removed:Recital 4: (4) In order to produce an effect on all the activities of the maritime transport sector, it is appropriate that this Regulation covers a share of the voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country. This Regulation should thus apply to half of the energy used by a ship performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the of the energy used by a ship performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, the entirety of the energy used by a ship performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and the energy used at berth in a port under the jurisdiction of a Member State. Such coverage of a share of the energy used by a ship in both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of this Regulation, including by increasing the positive impact on the environment of such framework. This framework should limit the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. In order to ensure smooth operation of maritime traffic, a level playing field among maritime transport operators and among ports, and avoid distortions in the internal market, all journe…

Added:– having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 26 April 2023 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

Removed:Recital 4 a (new): (4a) Given that this Regulation will impose additional compliance costs on the sector, compensatory actions need to be taken in order to prevent the total level of regulatory burden from increasing. Before the application of this Regulation, the Commission should therefore present proposals offsetting the regulatory burdens introduced by this Regulation, through the amendment or repeal of provisions in other Union legislative acts that generate regulatory burdens in the maritime sector.

Added:– having regard to Rule 59 of its Rules of Procedure,

Removed:Recital 4 b (new): (4b) In order to ensure the necessary degree of legal and investment certainty, this Regulation should be closely aligned to and consistent with Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation), the Directive2003/87/EC (EU ETS), Directive XXXX-XXX (Renewable Energy Directive), and Directive 2003/96/EC (Energy Taxation Directive). Such alignment should result in a coherent legislative framework for the shipping sector, that contributes to significantly increasing the production of sustainable alternative fuels, ensures the deployment of the necessary infrastructure and incentivises the use of these fuels in a steadily growing share of vessels. In order to ensure overall consistency with the Union’s climate, competitiveness and ‘sustainable economic growth’ targets the overarching, combined and cumulative climate and economic impacts of those legislative acts should be evaluated comprehensively and continuously.

Added:– having regard to the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Industry, Research and Energy,

Removed:Recital 4 c (new): (4c) The obligation for ports to provide an on-shore power supply should be matched by a corresponding obligation for ships to connect to the charging infrastructure designed to deliver that power supply while at berth, in order to ensure the effectiveness of that infrastructure and avoid the risk of stranded assets. Furthermore, efforts should be made to reduce the costs associated with on-shore charging by permanently exempting electricity supplied to vessels in port from taxation through amendments to Directive XXXX-XXXX (Energy Taxation Directive).

Added:– having regard to the report of the Committee on Transport and Tourism (A9-0233/2022),

Removed:Recital 5 a (new): (5a) With the increased costs of shipping for the vessels which do not comply with the requirements of this Regulation, the risk of evasive behaviour and circumvention of the provisions of this Regulation, in particular on the segment of liner container trade, should be addressed. Port calls to ports in the Union’s vicinity in order to limit the costs of compliance with this Regulation would not only diminish the environmental benefits expected and significantly undermine the objectives pursued by this Regulation, but could lead to additional emissions, due to the extra distance travelled to evade the application of this Regulation. It is therefore appropriate to exclude from the concept of port of call certain stops at non-Union ports. That exclusion should target ports in the Union’s vicinity where the risk of evasion is the greatest. A limit of 300 nautical miles constitutes a proportionate response to that risk, balancing the additional burden and the risk of evasion. Moreover, the exclusion from the concept of port of call should only target containerships and ports the main activity of which is the transshipment of containers. For such shipments, the risk of evasion also consists in a shift of port hub to ports outside the Union aggravating the effects of the evasion. For this reason, and in the absence of an IMO mandatory scheme on the use of renewable and low carbon fuels for international voyages at the global level that has a similar level of ambition to that of the…

Added:1. Adopts its position at first reading hereinafter set out;

Removed:Recital 5 b (new): (5b) In order to take into account the specific situation of island regions, as underlined in Article 174 of the Treaty, and the need to preserve connectivity between islands and peripheral regions with central regions of the Union, temporary exemptions should be allowed for voyages performed by passenger ships other than cruise passenger ships between a port of call under the jurisdiction of a Member State and a port of call under the jurisdiction of the same Member State located in an island with fewer than 100 000 permanent residents.

Added:2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

Removed:Recital 5 c (new): (5c) Taking into account the special characteristics of the outermost regions of the Union, notably their remoteness and insularity, and the constraints to which they are subject, special consideration should be given to preserving their accessibility, and the ability to connect to them efficiently by means of maritime transport. Therefore, only half of the energy used on voyages departing from or arriving to a port of call located in an outermost region should be included in the scope of this Regulation. For the same reason, temporary exemptions should be allowed for voyages between a port of call located in an outermost region and another port of call located in an outermost region, and to the energy used during their stay within the port of calls of the corresponding outermost regions.

Added:3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Removed:Recital 5 d (new): (5d) To ensure a level playing field for ships, including those built to operate in ice-covered waters on their way to, from or between Member State ports, specific information relating to a ship's ice class, and to its navigation through ice, should be considered when calculating GHG emission reductions on a vessel basis, as well as in the data monitored and reported on the basis of the Regulation (EU) 2015/757.

Added:P9_TC1-COD(2021)0210

Removed:Recital 6: (6) The person or organisation responsible for the compliance with this Regulation should be the shipping company, defined as the ship-owner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the ship-owner and that, on assuming such responsibility, has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention. This definition is based on the definition of ‘company’ in Article 3, point (d) of Regulation (EU) 2015/757 of the European Parliament and of the Council21 , and in line with the global data collection system established in 2016 by the International Maritime Organization (IMO). In line with the polluter pays principle, the shipping company could, by means of a contractual arrangement, hold the entity that is directly responsible for the decisions affecting the greenhouse gas intensity of the energy used by the ship accountable for the compliance costs under this Regulation. This entity would normally be the entity that is responsible for the choice of fuel, route and speed of the ship.

Added:Position of the European Parliament adopted at first reading on 11 July 2023 with a view to the adoption of Regulation (EU) 2023/… of the European Parliament and of the Council on the use of renewable and low-carbon fuels in maritime transport, and amending Directive 2009/16/EC

Removed:Recital 7: (7) In order to limit the administrative burden, in particular that of smaller operators, this Regulation should not apply to wooden ships of a primitive build and focus on ships with a gross tonnage above 5 000. Even though these latter ships represent only approximately 55% of all ships calling at ports under the Regulation (EU) 2015/757 of the European Parliament and of the Council, they are responsible for 90% of the carbon dioxide (CO2) emissions from the maritime sector.

Added:(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2023/1805.)

Removed:Recital 7 a (new): (7a) In order to ensure the continuing effectiveness of this Regulation, the Commission should monitor its functioning, carrying out impact assessments in respect of the gross tonnage threshold and the ship types covered by this Regulation. The Commission should, in particular, decide whether there are significant reasons to encompass smaller ships and additional ship types within the scope of this Regulation. The Commission should in particular take into account considerations such as the availability of relevant data, the potential GHG emissions reduction and the effectiveness of a scope widening in terms of climate impact, the scale of administrative burden, as well as financial and social consequences thereof.

Removed:Recital 9: (9) While instruments such as carbon pricing or targets on the carbon intensity of activity promote improvements in energy efficiency, they are not suited to bring about a significant shift towards renewable and low-carbon fuels in the short and medium term. A specific regulatory approach dedicated to the deployment of renewable and low-carbon marine fuels and substitute sources of energy, such as wind or electricity, is therefore necessary. That approach should be implemented in a goal-based, technology-neutral and cost-effective manner.

Removed:Recital 10: (10) Policy intervention to stimulate demand of renewable and low-carbon maritime fuels should be goal-based and respect the principle of technological neutrality. Accordingly, ambitious limits, in line with the goals of the Paris Agreement, should be set on the greenhouse gas intensity of the energy used on-board by ships without prescribing the use of any particular fuel or technology.

Removed:Recital 10 a (new): (10a) A dedicated Ocean Fund should be established, channelling revenues generated from the auctioning of maritime allowances within the ETS back to the maritime sector. Funds provided under the Ocean Fund should be used to support projects and investments related to the improvement of the energy efficiency of ships and ports, to innovative technologies and infrastructure for decarbonising maritime transport, to the production and deployment of sustainable alternative fuels and to the development of zero-emission propulsion technologies.

Removed:Recital 11: (11) Development and deployment of renewable and low carbon fuels and propulsion technologies with a high potential for sustainability, commercial maturity and a high potential for innovation and growth to meet future needs should be promoted. This will support creating innovative and competitive fuels markets and ensure sufficient supply of sustainable maritime fuels in the short and long term to contribute to Union transport decarbonisation ambitions, while strengthening Union’s efforts towards a high level of environmental protection. For this purpose, sustainable maritime fuels produced from feedstock listed in Parts A and B of Annex IX of Directive (EU) 2018/2001, as well as synthetic maritime fuels should be eligible. In particular, sustainable maritime fuels produced from feedstock listed in Part B of Annex IX of Directive (EU) 2018/2001 are essential, as currently the most commercially mature technology to decarbonise maritime transport already in the short term.

Removed:Recital 11 a (new): (11a) In order to encourage the early market development and deployment of the most sustainable and innovative fuel technologies with growth potential to meet future needs, a dedicated incentive for renewable fuels of non-biological origin (RFNBO) is necessary. This family of fuels has high potential to introduce renewable energy into the marine bunker fuel mix. In view of significantly higher production costs for RFNBOs in the short and medium terms, it is important to ensure a degree of demand that supports investment in such family of fuels. This Regulation introduces a combination of measures to ensure the support to the uptake of sustainable RFNBOs. These include (a) a multiplier until 2035 to reward companies that decide to opt for these fuels despite their relatively high price, and (b) from 2030 a fixed minimum share of RFNBOs in the fuel energy mix. To facilitate compliance with the minimum share of RFNBOs, flexibility measures according to Articles 17 and 18 of this Regulation should apply. Companies can, by means of contractual arrangements, hold the fuel suppliers accountable for the compliance costs under this Regulation, if RFNBOs were not delivered according to agreed conditions.

Removed:Recital 13: (13) However, this approach must be stricter in the maritime sector. The maritime sector has currently insignificant levels of demand for food and feed crops-based biofuels, bioliquids and biomass fuels, since over 99% of currently used marine fuels are of fossil origin. Therefore, the non-eligibility of food and feed crop-based fuels under this Regulation also minimises any risk to slow down the decarbonisation of the transport sector, which could otherwise result from a shift of crop-based biofuels from the road to the maritime sector. It is essential to minimise such a shift, as road transport currently remains by far the most polluting transport sector and the maritime transport currently uses predominantly fuels of fossil origin. It is therefore appropriate to avoid the creation of a potentially large demand of food and feed crops-based biofuels, bioliquids and biomass fuels by promoting their use under this Regulation. Accordingly, the additional greenhouse gas emissions and loss of biodiversity caused by all types of feed and food crop-based fuels require that these fuels be considered to have the same emission factors as the least favourable pathway.

Removed:Recital 14: (14) The long lead times associated with the development and deployment of new fuels and energy solutions for maritime transport, as well as the long average lifespan of ships, which typically range between 25 and 30 years, require rapid action and the establishment of a clear and predictable long-term regulatory framework facilitating planning and investment from all the stakeholders concerned. A clear and stable long-term regulatory framework will facilitate the development and deployment of new fuels and energy solutions for maritime transport, and encourage investment from stakeholders. Such framework should define limits for the greenhouse gas intensity of the energy used on-board by ships, both during navigation and at berth, until 2050. Those limits should become more ambitious over time to reflect the expected technology development and increased production of marine renewable and low carbon fuels. To ensure legal certainty and to allow sufficient time for the sector to plan and prepare for the long-term, as well as to avoid the risk of stranded assets, any future proposals to amend this Regulation should be limited in scope and should avoid significant changes to the requirements.

Removed:Recital 15: (15) This Regulation should establish the methodology and the formula that should apply to calculate the yearly average greenhouse gas intensity of the energy used on-board by a ship. This formula should be based on the fuel consumption reported by ships and consider the relevant emission factors of these fuels. The use of substitute sources of energy, such as wind or solar power, generated on-board, or electricity provided at berth, should also be reflected in the methodology.

Removed:Recital 16: (16) In order to provide a more complete picture of the environmental performance of the various energy sources, the GHG performance of fuels should be assessed on a well-to-wake basis, taking into account the impacts of energy production, transport, distribution and use on-board, accounting for the footprints of the various stages of the fuel lifecycle. This is to incentivise technologies and production pathways that provide a lower GHG footprint and real benefits compared to the existing conventional fuels.

Removed:Recital 17: (17) The well-to-wake performance of maritime fuels should be established using default or actual and certified emission factors covering the well-to-tank and tank-to-wake emissions.

Removed:Recital 21: (21) The use of on-shore power supply (OPS) abates air pollution produced by ships at berth as well as reduces the amount of GHG emissions generated by maritime transport when at berth. OPS represents an increasingly clean power supply available to ships at berth, in view of the growing shares of renewables and fossil free energy sources in the EU electricity mix. While only the provision on OPS connection points is covered by Directive 2014/94/EU (Alternative Fuels Infrastructure Directive – AFID), the demand for and, as a result, the deployment of this technology has remained limited. To ensure that air pollution at berth is abated and that OPS infrastructure is economically viable and delivers a return on investment, specific rules should be established to mandate the use of OPS by the most polluting ships in situations where that use would effectively reduce emissions at a reasonable cost.

Removed:Recital 22: (22) In addition to OPS, other zero emission technologies might be capable of offering equivalent environmental benefits in ports. When the use of an alternative technology is demonstrated to be equivalent to the use of OPS, in terms of air pollution and GHG emissions reduction, a ship should be exempted from its use of OPS.

Removed:Recital 23: (23) Exceptions to the use of OPS should also be provided for a number of objective reasons, certified by the managing body of the port of call, the terminal operator or the competent authority, depending on the governance model for ports in the different Member States. Those exceptions should be limited to unscheduled port calls for reasons of safety or saving life at sea, for short stays of ships at berth of less than two hours as this is the minimum time required for connection, and for the use of on-board energy generation under emergency situations. If it is impossible to supply sufficient on-shore power, due to insufficient capacity in the local grid connected to the port, this should not be considered to be a failure by the port or by the ship owner or operator to comply with the requirements of this Regulation, provided that the insufficient local grid capacity is duly attested by the grid manager to the verifiers.

Removed:Recital 24: (24) Exceptions in case of unavailability or incompatibility of OPS should be limited after ship and port operators have had sufficient time to make the necessary investments, in order to provide the necessary incentives for those investments and avoid unfair competition. In order to ensure full interoperability, ports should equip their berths, and ship owners their vessels, with power installations that comply with applicable standards. From 2035, ship operators should plan carefully their calls at TEN-T ports covered by the Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation) to make sure that they can carry out their activities without emitting air pollutants and GHG at berth and compromise the environment in coastal areas and port cities. A limited number of exceptions in case of unavailability or incompatibility of OPS should be maintained in order to provide the possibility for occasional last-minute changes in port call schedules and calls in ports with incompatible equipment. In order to mitigate the risk of stranded assets, incompatibility of OPS infrastructure on board and at berth as well as alternative fuel demand and supply imbalances, frequent consultation meetings between relevant stakeholders should be organised to discuss and take decisions on requirements and future plans.

Removed:Recital 24 a (new): (24a) The targets for provision of OPS laid down in Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation) take into account the types of vessels served and the respective traffic volumes of maritime ports. The requirement for ships to connect to OPS while at berth should not apply to vessels when calling at ports outside the scope of the OPS requirement by that Regulation, unless the port has OPS installed and available at the visited berth. If a ship calls at a non-TEN-T port at which OPS is available, that ship should connect to the OPS while at berth.

Removed:Recital 24 b (new): (24b) Even if OPS is an important tool to reduce local emissions of air pollutants, its potential to reduce greenhouse gas emissions depends entirely on the energy mix that is fed through the cables. To realise the full climate and environmental potential of OPS, Member States should increase the capacity and connectivity of electricity grids and continue to reduce the GHG intensity of their energy mixes, so as to provide ports with affordable, plannable and fossil free electricity.

Removed:Recital 24 c (new): (24c) The implementation of this Regulation should take due account of the diverse governance models for ports across the Union, in particular as regards the responsibility for issuing a certificate exempting a vessel from the obligation to connect to OPS.

Removed:Recital 24 d (new): (24d) Coordination between ports and ship operators is crucial to ensure smooth connection procedures to on-shore power in ports. Ship operators should inform the ports they call at about their intentions to connect to on-shore power and the amount of power needed during the given call, in particular when it exceeds the estimated needs for this ship category.