‘FuelEU’ crucial for sustainable shipping

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The FuelEU Maritime regulation is crucial for promoting the uptake of sustainable and scalable fuels in shipping, ECSA President Philippos Philis said.

As the guest speaker at the Cyprus Marine Club monthly meeting, Philis discussed the “Latest EU shipping developments”, focusing on the European Community Shipowners’ Associations policy supporting the objectives of the European Green Deal, EU Climate Law and the Paris Agreement.

The FuelEU Maritime regulation aims to contribute to the EU climate neutrality objectives by 2050 by setting up an EU fuel standard with increasing greenhouse gas (GHG) intensity requirements and accelerating demand for renewable and low-carbon fuels (RLF) in the maritime transport sector.

Philis said that as negotiations on FuelEU Maritime enter their final phase to ensure a successful energy transition of shipping, it is necessary to make sufficient quantities of low- and zero-carbon fuels available in the market at an affordable price.

ECSA has called on the European Parliament and the Council to support the mandatory inclusion of fuel suppliers under the scope of FuelEU Maritime as proposed by the European Parliament.

Philis said that according to the ECSA position, the regulation “is key to ensure that shipowners are not unduly penalised if the sustainable fuels necessary for compliance are not delivered”.

“This provision, together with a binding target for maritime fuel suppliers as proposed by the Parliament in RED III, is essential for the energy transition of shipping.”

ECSA welcomed the European Parliament vote on implementing the Basel III rules.

The provisions on capital requirements are the first step to enable European banks to continue lending to European shipping companies.

Philis, founder and Managing Director of shipowner and ship management company Lemissoler since 1996, is a past president of the Cyprus Shipping Chamber (CSC) and chair of the Cyprus Shipowners’ Employers Association (CySEA) from 2016-2021.

During his Cyprus Marine Club presentation, Philis also covered the ongoing issues of the EU recognition of the Philippine Seafarers’ Certificates, the war in Ukraine, and the impact of EU sanctions on Russia.

On the home front, he discussed the recently approved national regulation on minimum wages and its implications.

He elaborated further on the taxonomy regulation and the ship finance related to the regulation on prudential requirements provided by Basel rules III and IV.

Club president Capt. Eberhard Koch announced the next speaker on March 21 will be Dr Iliana Christodoulou-Varotsi, senior legal consultant and industry trainer, with a presentation on “Current Issues concerning seafarers’ Legal Protection and Well Being: Post Pandemic lessons learned and projecting towards the future.”