3 new Fit for 55 laws adopted to decarbonise EU’s economy

04/08/23

The Council of the EU has adopted another three laws of the Fit for 55 package, aimed at achieving the EU's goal of cutting greenhouse gas and reaching climate neutrality by 2050. This concerns the Energy Efficiency Directive (EED), the alternative fuels infrastructure Regulation (AFIR) and the FuelEU maritime regulation.

These laws are part of the wider Fit for 55 package, which also includes tFuelEU maritime initiativehe recently adopted revision of EU ETS and the Carbon Border Adjustment Mechanism. For more information and backgrounds on the Fit for 55 Package, please visit our landing page.

What does this mean for you?

The FuelEU maritime initiative will have a direct impact on fuel suppliers, airlines and airports. These will have to prepare for the new requirements on the use of sustainable aviation fuels, provision of infrastructure and more.

The Alternative fuels infrastructure Regulation (AFIR) requires Member States, maritime ports and airports to ensure that there are enough recharging points and alternative fuel refuelling points in the EU for the cars, planes and ships that use them.

The EED sets specific goals for Member States to reduce final energy consumption. This will lead to national regulations for energy users to meet these targets.

FuelEU maritime Regulation

The main objective of the FuelEU maritime initiative is to increase the demand for and the consistent use of renewable and low-carbon fuels and reduce the greenhouse gas emissions from the shipping sector.

This Regulation lays down uniform rules imposing:

a limit on the greenhouse gas (GHG) intensity of energy used on board by a ship arriving at, staying within or departing from ports under the jurisdiction of a Member State; and
an obligation to use on-shore power supply (OPS) or zero-emission technology in ports under the jurisdiction of a Member State.

Mandatory deployment targets should ensure that the sector finds sufficient shore-side electricity supply for ships that are moored at the quayside in TEN-T core maritime ports and TEN-T comprehensive maritime ports to comply with those requirements.

Monitoring plan required as of August 2024

Companies are responsible for monitoring and reporting the amount and type of energy used on board by ships in navigation and at berth, as well as other relevant information, such as information on the type of engine on board or presence of wind-assisted propulsion technologies, with a view to showing compliance with the limit on the GHG intensity of the energy used on board by a ship set out by this Regulation.

To facilitate the fulfillment of those monitoring and reporting obligations and the carrying-out of verification activities by the verifiers, companies should document the envisaged monitoring method and provide further details on the application of this Regulation in a monitoring plan. The monitoring plan, as well as its subsequent modifications, if applicable, should be submitted to and assessed by the verifier.

The relevant companies shall submit to the verifiers a monitoring plan for each of their ships by 31 August 2024, They will have to indicate the method chosen for monitoring and reporting the amount, type and emission factor of energy used on board by ships and other relevant information.

For ships falling under the scope of this Regulation for the first time after 31 August 2024, companies shall submit a monitoring plan to the verifier without undue delay and no later than two months after each ship’s first call at a port under the jurisdiction of a Member State.

Alternative fuels infrastructure Regulation (AFIR)

The alternative fuel infrastructure Regulation will ensure the deployment of more recharging and refuelling stations for alternative fuels (replacing fossil) across Europe in the coming years. This will enable the transport sector (cars, trucks, ships and planes) to significantly reduce its carbon footprint.

Energy efficiency Directive (EED)

The new rules aim to reduce final energy consumption by setting more ambitious energy efficiency targets. Through these rules, Member States will collectively reduce final energy consumption by at least 11.7 percent in 2030, compared with the energy consumption forecasts for 2030 made in 2020.

This translates into an upper limit to the EU’s final energy consumption of 763 million tonnes of oil equivalent (end-users) and of 993 million tonnes of oil equivalent for primary consumption (energy use including production and supply).

The annual energy savings target for final energy consumption will gradually increase from 2024 to 2030. Member States will ensure new annual savings of 1.49 percent of final energy consumption on average during this period, gradually reaching 1.9 percent on 31 December 2030.

The relevant companies will have to meet (additional) obligations on an energy management system and energy savings. These obligations will be part of the EED Audit Obligation process.

Next steps

Following today’s formal adoption by the Council, the two new regulations and the directive (EED) will be published in the EU’s Official Journal after the summer and will enter into force the twentieth day after this publication.

The new AFIR rules will apply from six months after the date of entry into force of the regulation (so the first quarter of 2024).

The new FuelEU maritime Regulation will apply from 1 January 2025, apart from provisions on the monitoring plan which will apply from 31 August 2024.