Coastal Shipping: Greece exempt until 2029 from FuelEU Maritime Regulation

Greece received an exemption for coastal shipping until 2029 for the implementation of the provisions of the regulation “FuelEU Maritime”, as comes out from a relevant announcement of the Ministry of Shipping regarding the decisions taken yesterday by the Council of Ministers of Maritime Transport of the EU.

The Council met in Luxembourg and adopted a general approach to the Regulation “on the use of renewable and low carbon fuels by the maritime transport sector (FuelEU Maritime).

It seems that Greece, according to the announcement of the Ministry of Shipping, received an extension in the application of the regulation in coastal shipping as it is pointed out a time exception is recognized, until 31.12.2029, from the application of the provisions of the Regulation “FuelEU Maritime” for coastal vessels ships, when they sail to island ports with less than 200,000 inhabitants.

This means that virtually all Greek islands – except Crete – are excluded from the application of the regulation.

The regulation “on the use of renewable and low carbon fuels in the maritime transport sector (FuelEUMaritime)”, which is part of the “Fit for 55” legislative package presented by the European Commission on 14.07.2021, is pursued in accordance with EU, promoting the use of cleaner marine fuels by ships, regardless of flag, arriving or departing from European ports.

A relevant announcement states that “following the coordinated efforts of the Ministry of Shipping and Island Policy and the Permanent Greek Representation in the EU. During the examination of the provisions of the draft Regulation by the competent bodies of the Council of the EU, the text of the Regulation included provisions which:

(i) Recognizes, pursuant to the fundamental principle “the polluter pays”, the possibility of the ship’s commercial operator assuming the obligation to compensate the shipping company when the ship fails, in the event that It is the commercial operator ‘s responsibility to purchase the fuel, to comply with the requirements of the FuelEU Maritime Regulation as regards the annual GHG emission limit for the energy used by the ship.

(ii) A time exception is recognized, until 31.12.2029, from the application of the provisions of the Regulation “FuelEU Maritime” for ferry ships, when they sail in island ports with less than 200,000 inhabitants “.

“Ensuring the competitiveness of the European shipping industry”

On the occasion of the meeting of the EU Council of Ministers of Transport. The Minister of Shipping and Island Policy Giannis Plakiotakis stated:

“Greece fully shares the environmental objectives of the” FuelEU Maritime “Regulation for the gradual use of cleaner fuels in seagoing shipping and coastal shipping. The text of the general approach agreed today in the Council of Ministers of Maritime Transport of the EU. is balanced, maintains the high level of ambition of the original Proposal, while at the same time ensuring the competitiveness of the European shipping industry.

I consider an important element of the text to be a satisfactory response to the geographical specificities of the Member States, through the realistic treatment of specific cases, where the implementation of the Regulation will have an economic and social impact. In the case of Greece, the granting of a limited exemption for the coastal shipping industry addresses the estimated economic and social impact on residents, producers and visitors to our island areas while providing vital time for both the adequate availability of alternative fuels and for the energy transition of the coastal fleet.

I also consider it an important element of the text to recognize the possibility of establishing liability for compliance with the new Regulations of the commercial operator (“commercial operator”), when he chooses the fuel to be used and the course of the ship, applying with the most appropriate for this particular way the fundamental principle the “polluter pays”.

Our country looks forward to similar regulations and the proposal for a Directive on the inclusion of shipping in the European Pollutant Trading System (EU ETS).”