The much-anticipated FuelEU Maritime regulation represents a critical milestone in the industry’s decarbonization journey. Designed to reduce greenhouse gas (GHG) emissions, this regulation sets GHG intensity limits for ships entering and leaving the EU, incentivizing the use of renewable and low-carbon fuels.  

Despite the unknowns that still exist around FuelEU, there are many ways in which impacted industry participants can lead the charge and take advantage of opportunities throughout next year. To provide insights into how we at Veson have been preparing for FuelEU, Associate Director of Product Bobby Morse and I recently held a webinar series across global timezones. We evaluated the regulation’s unique elements, drew comparisons with EU ETS, and highlighted practical solutions to factor FuelEU into commercial management. I have summarized some of the key steps to FuelEU readiness here – let’s take a look.  

Understanding FuelEU Maritime and Its Impact

This regulation presents both challenges and opportunities for shipping companies. Beyond meeting GHG intensity limits, it requires adopting cleaner fuels, managing compliance costs, and integrating advanced technologies. Rooted in the polluter pays principle, it holds the compliance-responsible entity—typically the ISM or DOC holder—accountable for penalties or compliance costs. However, these costs are often passed down through charter party agreements, ensuring financial responsibility aligns with operational decisions, such as fuel purchasing or voyage planning. As such, shipping companies are evaluating tailored strategies to manage these dynamics effectively while incentivizing sustainable practices. 

Polluter Pays Penalty Diagram Veson

In addition to strategy, digital solutions that are dynamic and specific to maritime are crucial for optimizing operations amidst this complex regulatory landscape. Let’s assess strategies for FuelEU readiness and how to incorporate them into commercial workflows. 

Key Steps to Achieving FuelEU Readiness

1. Evaluate current fuel usage 

The first step toward compliance is understanding your fleet’s current fuel consumption patterns. By analyzing these trends, you can identify opportunities to incorporate biofuels or other compliant alternatives. A thorough evaluation allows for strategic planning, ensuring a smoother transition toward meeting GHG intensity targets while minimizing operational disruptions. 

2. Factor FuelEU into day-to-day commercial management 

Veson’s IMOS Platform includes an advanced FuelEU tab within its Carbon Calculator that provides: 

  • Voyage-level FuelEU penalty calculations to help you anticipate potential costs for non-compliance. 
  • FuelEU compliance balance allows you to maintain a real-time view of your emissions performance. 
  • Seamlessly integrated with the rest of the operational workflow, enabling easy tracking of emissions data across port names, itineraries, and operational phases. 

With these capabilities and reportable data, operators can efficiently manage compliance requirements, offering both a granular view and a fleet-wide perspective on performance. 

3. Consider integrating biofuels into your strategy 

The landscape of fuels is evolving, and as it continues to evolve, biofuels are emerging as a preferred solution for the near-term. Bio blends, such as B30 and B24, may play an important role in your strategy, and there is a need to properly track and report on each of them. The IMOS Platform simplifies the complexities of managing biofuel usage by supporting diverse blends and calculating their impact on GHG intensity targets. This enables operators to leverage the precision of the FuelEU Calculator to maintain an accurate compliance balance. 

4. Explore dual fuels and future fuels 

As the industry progresses, dual-fuel vessels and next-generation fuels like ammonia and methanol are becoming viable options. IMOS enables the seamless management of dual-fuel vessels, allowing operators to switch between fuel modes like LNG and low-sulfur fuel. These features not only support compliance but also help reduce operational costs and emissions. 

5. Calculate alternate compliance costs 

FuelEU Maritime permits flexible compliance strategies, such as paying penalties or opting for alternate fuels. With IMOS, you can model these scenarios, evaluate financial impacts, and manage contractual obligations efficiently. This capability is critical for minimizing the financial burden of regulatory compliance. 

6. Consider implementing strategic pooling and reporting 

Pooling compliance data across a fleet can yield valuable insights and improve decision-making. IMOS allows operators to aggregate emissions data, providing the analytical tools necessary to fine-tune operations and ensure regulatory adherence. By integrating this data into strategic planning, companies can maintain a competitive edge while staying within compliance limits. 

Building Flexible Solutions for a Dynamic Regulation

Managing fuel consumption data, calculating emissions, and aligning with regulatory thresholds are all key functions of compliance where commercial solutions can support. In Veson’s IMOS Platform, features like voyage planning and reporting integrate seamlessly with emissions tracking to optimize operational efficiency and support compliance. IMOS Analytics then delivers actionable insights for decision-making, allowing you to integrate learnings and adapt proactively as the regulation and the industry’s approach evolves. 

In building these initial solutions to support FuelEU readiness, our approach has been guided by three principles: 

  1. Build value where there is clarity and consensus 
  1. Build practical, commercial solutions in an agile, iterative fashion 
  1. Engage and closely collaborate with clients and the industry 

IMOS’s FuelEU capabilities, from penalty calculations to dual-fuel management, were developed in close collaboration with our client community and will continue to iterate as the industry progresses with this change. These tools not only help you meet regulatory requirements but also unlock new efficiencies in fuel and emissions management. 

Whatever Your Compliance Strategy, Stay Supported with IMOS

The FuelEU Maritime regulation marks a significant shift in shipping operations, but with the right tools and strategies, it’s an opportunity to take the lead in innovation and decarbonization. Veson’s IMOS Platform is at the forefront of this transition, providing comprehensive solutions for compliance, optimization, and cost management. 

For a detailed walkthrough of these solutions, watch the full webinar recording or get in touch with us to learn how we can help your organization stay ahead of regulatory changes.