Facing Up to FuelEU Maritime

Facing up to Fuel EU Maritime

The recently enacted FuelEU Maritime Initiative will introduce written contracts and regulations for

marine fuel traders and suppliers and their customers in Europe. Steve Simms of Simms Showers

advises that marine fuel traders and suppliers must understand the impact of FuelEU Maritime on their

relationships and prepare accordingly. The initiative aims to reduce greenhouse gas emissions in the

European Union by at least 55% by 2030 and achieve climate neutrality by 2050. It will regulate fuel

sales to vessels over 5000 gross tons calling in the European Economic Area (EEA) and impose GHG

intensity limits. Penalties will be imposed on vessels exceeding energy consumption limits, and fuel

suppliers will be liable to compensate their customers for these penalties. The initiative raises questions

about the definition of “fuel supplier” and the extent of liability for commercial operators.

Suppliers must ensure compliance with agreed terms, document fuel components, and anticipate penalty claims.

The enforcement authority responsible for assessing penalties is yet to be determined, but it is expected

that some entity will review fuel supply contracts for compliance. Traders and suppliers must now draft

contract provisions that protect their interests while meeting FuelEU Maritime requirements. Clear

communication and confirmation of agreed terms, including fuel quality, quantity, emission factors, and

compliance with regulations, are essential. The article gives detailed advice about how traders and

suppliers now can and must meet FuelEU Maritime requirements for their contracts, including terms

and conditions.

Read the full article and details of considerations here: Facing up to FuelEU Maritime, Bunkerspot | May 2023