UK Shipowners Propose Fuel Standard Built on Lessons from FuelEU

On October 19, the UK Chamber of Shipping published a paper titled 'Designing a Workable UK Maritime Fuel Standard: Lessons from the implementation of FuelEU Maritime', calling on the UK government to ensure that any future national maritime fuel standard is underpinned by reliable reporting systems, clear compliance rules and sufficient availability of low-carbon fuels. The body warned that regulatory complexity could drive up costs and undermine the competitiveness of the shipping sector.

The 22-page report, according to Splash 247, draws on the experience of implementing FuelEU Maritime, in force since January 1, 2025 for commercial vessels above 5,000 gross tonnage calling at European Union ports, which requires a 2% reduction in greenhouse gas intensity in 2025, rising progressively to 80% by 2050 against the 2020 baseline. The Chamber identified difficulties such as complex reporting requirements, limited preparation time, evolving guidance and inconsistencies in compliance calculations, as well as issues with compliance pooling, fuel allocation, verification and digital reporting.

Among its recommendations, the Chamber calls for a ship-level monitoring, reporting and verification system to be fully operational and tested at least one year before compliance obligations take effect, with digital infrastructure trialled over a full prior reporting cycle. It also calls for alignment with the International Maritime Organization's (IMO) emerging fuel certification and lifecycle assessment frameworks, avoiding parallel certification and reporting systems that would create administrative duplication or the risk of double-counting emissions.

The paper advocates for fuel-neutral regulation, with realistic, evidence-based targets regarding the availability of alternative fuels and infrastructure readiness, as well as flexible compliance mechanisms that reflect the commercial realities of the sector. It also proposes a periodic review process to maintain alignment with IMO developments and avoid unnecessary regulatory divergence.

Peter Aylott, Director of Policy at the UK Chamber of Shipping, said the UK has the opportunity to get this right from the outset, learning from the implementation of FuelEU to build a system that cuts emissions without creating unnecessary complexity or putting UK shipping at a competitive disadvantage. Anna Ziou, Chair of the Chamber's Carbon Working Group and Director of Maritime and Regulatory Affairs at Carnival Corporation, noted that fuel standards require mature data systems, clear certification rules, tested digital infrastructure and sufficient lead time for industry, verifiers and regulators to prepare.

The intervention comes as the UK Department for Transport prepares to consult on a national maritime fuel standard, with a consultation expected by late 2026, as part of the UK Maritime Decarbonisation Strategy, which sets a 30% reduction in lifecycle greenhouse gas emissions from domestic maritime fuel by 2030, 80% by 2040, and net zero by 2050, relative to 2008 levels.