iGEN
Visit IGEN World Explore IGEN Expo
EXPLORE UPGRADE PLANS
BREAKING
Relay Q: London Startup's AI Microphone Puts Hands-Free Voice Dictation on the Desktop Google Pixel 10a Crowned Best Budget Pixel in WIRED's Updated 2026 Buying Guide Global Steel Wire seeks fresh Santander terminal concession Veritas Shipmanagement books fresh ultramax pair at COSCO yard, Splash247 reports Seanergy linked to fresh newcastlemax at Hengli as dry bulk orderbook grows Weaker rupee may push foreign assets over FAST-DS Rs 1 crore limit, raising tax bill 45 Indian power plants face critically low coal stocks as monsoon hits supply SFL Makes Fresh $363m Car Carrier Play With Four LNG Dual-Fuel Newbuilds Iran Blacklist Threatens Hormuz Shuttle Tanker Lifeline for Gulf Crude Keyfield International Enters Dredging Market with $24.7m Vessel Acquisition Relay Q: London Startup's AI Microphone Puts Hands-Free Voice Dictation on the Desktop Google Pixel 10a Crowned Best Budget Pixel in WIRED's Updated 2026 Buying Guide Global Steel Wire seeks fresh Santander terminal concession Veritas Shipmanagement books fresh ultramax pair at COSCO yard, Splash247 reports Seanergy linked to fresh newcastlemax at Hengli as dry bulk orderbook grows Weaker rupee may push foreign assets over FAST-DS Rs 1 crore limit, raising tax bill 45 Indian power plants face critically low coal stocks as monsoon hits supply SFL Makes Fresh $363m Car Carrier Play With Four LNG Dual-Fuel Newbuilds Iran Blacklist Threatens Hormuz Shuttle Tanker Lifeline for Gulf Crude Keyfield International Enters Dredging Market with $24.7m Vessel Acquisition
Home ›› Regulations Compliance ›› Product Standards ›› What’s wrong with FuelEU: Six flaws in the EU maritime fuel rule

What’s wrong with FuelEU: Six flaws in the EU maritime fuel rule

FuelEU Maritime, Regulation (EU) 2023/1805, requires annual cuts in the greenhouse gas intensity of ship fuels. A Splash247 analysis by Captain Alex Byelyavtsev identifies six structural problems: collective compliance, unready fuel supply, the burden on fuel users, a steep target trajectory, capital constraints, and the placement of duty on vessels rather than system improvements. Shipping faces the rule alongside the EU ETS.

iG
iGEN Editorial
August 10, 2026
What’s wrong with FuelEU: Six flaws in the EU maritime fuel rule

From the 2025 compliance year, FuelEU Maritime — Regulation (EU) 2023/1805 — requires the greenhouse gas (GHG) intensity of energy used on board ships to decline each year, with a penalty for missing the limit and a Document of Compliance for ships that meet it. Writing in Splash247, Captain Alex Byelyavtsev identifies six structural problems with the regulation, which was designed to push ships toward renewable and low-carbon energy and support the EU’s Fit for 55 climate package.

Compliance can be collective

The first problem concerns the compliance mechanism itself. Under Article 21 of the regulation, ships may pool compliance balances so the pool meets the GHG intensity limit on average, Byelyavtsev noted. That pooling flexibility is written into the rule, meaning a ship can appear compliant through the pool rather than through its own fuel. A FuelEU Document of Compliance confirms that a ship complied with the regulation for a reporting period — and that compliance can include pooling. It does not prove that the ship cut its voyage emissions or changed fuel at scale. Compliance is an accounting result; emission reduction is a physical result, and early FuelEU practice has mixed the two.

The fuel is not ready at fleet scale

The second problem is the fuel itself. Clean marine energy is not available at fleet scale, according to the Splash247 analysis. Drop-in biofuels are limited and contested; methanol and ammonia help only ships engineered to burn them, while most of the world fleet continues to use conventional bunkers. Yet the legal year can still end with a green balance. The European Commission’s own impact assessment pathways projected that renewable and low-carbon fuels should provide 6% to 9% of the international maritime fuel mix by 2030, and 86% to 88% by 2050 — model paths, not today’s supply.

Who is obliged

The third problem is the allocation of the compliance duty. The regulation places the duty on the company responsible for the ship — the fuel user — rather than placing the same hard duty on producers to make that fuel at scale, according to Byelyavtsev. It concentrates responsibility on the final user. A study by the International Chamber of Shipping (ICS) and the European Community Shipowners’ Associations (ECSA) warned that putting the main fuel-standard duty on ships rather than fuel suppliers creates enforcement and supply problems, because the law can demand a cleaner fuel that does not yet exist in the volumes required.

The trajectory, the money, the ship

The fourth problem is the target itself. Article 4 sets the reduction at 2% from 2025, 6% from 2030, then far harder toward 80% by 2050. The dates are clear, but for many ships the physical path is not. The target is someday-achievable if the fuels appear, the ships are replaced and the money holds; someday possible is not the same as achievable now.

The fifth problem is money. Real transition requires capital for new ships and scarce fuels. UNCTAD’s Review of Maritime Transport 2025 put the global containership fleet at about 30.3 million teu as of April 2025, up about 10% year-on-year after heavy ordering and elevated deliveries. Those ships add slots; more slots mean more competition, and that squeezes the surplus available for the next round of transition.

The sixth problem is where responsibility sits. FuelEU attaches the duty to the ship because the ship burns the energy. Research on port congestion shows ships often sail fast then wait at anchor for a berth, with average potential emissions savings of about 10% for containerships if waiting time becomes slower sailing. An IMO-backed Just in Time study found average fuel savings of about 14% per containership voyage when speed is matched to berth availability. FuelEU still parks the legal duty on the vessel, Byelyavtsev observed.

Regulatory context

Shipping accounts for only about 3% to 4% of EU CO₂ emissions on Commission figures, and the sector already faces the EU Emissions Trading System (ETS) for shipping alongside FuelEU. The political noise is large for that share, and the early paperwork success is large too, but the real fuel change is still small.

What’s wrong with FuelEU is not that shipping was asked to cut emissions; it is the order of the rule. The EU set a mandatory transition for fuel users without matching it with a hard production duty at the same scale.

Compliance year Required GHG intensity reduction
2025 2%
2030 6%
2050 80%

Sources: Splash247 Maritime

Keep Reading

Recommended Stories

ZERO44 Makes €492-per-Tonne Case for Biofuel Profit Beyond Compliance Logistics

ZERO44 Makes €492-per-Tonne Case for Biofuel Profit Beyond Compliance

Berlin-based carbon management platform ZERO44 has published a whitepaper demonstrating that shipowners can turn biodiesel premiums into a profit of up to €492 per tonne by coordinating compliance across CII, EU ETS, FuelEU Maritime and voluntary carbon markets. The analysis highlights pooling and insetting as dual revenue streams, warns against double-counting reductions, and addresses charter party hurdles.

July 15, 2026
Shippers Face Higher Costs If IMO Net-Zero Framework Vote Fails, Baxter Freight Warns Logistics

Shippers Face Higher Costs If IMO Net-Zero Framework Vote Fails, Baxter Freight Warns

Tom Isler of Baxter Freight argues freight buyers should hope the IMO's Net-Zero Framework passes in October. A failed vote would not end carbon pricing but would fragment it into multiple surcharges, making costs harder to read, forecast and challenge. The price lands on freight bills either way.

August 27, 2026
UK Carbon Market Extends to Domestic Shipping from July 1, 2026 Trade

UK Carbon Market Extends to Domestic Shipping from July 1, 2026

The United Kingdom extended its emissions trading scheme to domestic shipping on July 1, 2026, covering cargo and passenger vessels of 5,000 gt and above. Operators must monitor CO2, methane, and nitrous oxide emissions and surrender UK allowances. The scheme is separate from the EU ETS, adding a new compliance layer for operators trading around the UK.

July 8, 2026
FuelEU Proxy Flags Deficit Risk for Over 40% of Nearly 9,000 Ships Assessed Regulations & Compliance

FuelEU Proxy Flags Deficit Risk for Over 40% of Nearly 9,000 Ships Assessed

A proxy analysis by climate policy consultancy Kickster of nearly 9,000 ships using public EU MRV data found that over 40% fell into categories associated with potential FuelEU Maritime deficits. The consultancy stressed the categories are not official compliance balances. Official figures show more than 13,000 FuelEU reports verified by March 2026, with most being satisfactory and around 90% of vessels using pooling.

July 16, 2026