19 January 2023 (Lloyd's List) - THE European Union is facing a call for more ambitious FuelEU Maritime regulations, which aim to promote fuel substitution and the shift to greener and lower-carbon fuels. Danish Shipping, DFDS, Global Alliance Powerfuels and the Methanol Institute are among more than 40 associations and maritime technology suppliers that have written to the EU. They are seeking to “encourage the co-legislators to fully seize the opportunity to make EU a global leader in green shipping by raising the ambitions via a higher GHG-intensity target on the one hand and to promote the uptake of green, sustainable e-fuels by including a multiplier mechanism to reward first movers and a dedicated binding sub-quota to ensure an industry-wide uptake”, according to Danish Shipping. “FuelEU Maritime is a unique opportunity, and it is so important that we `get it right from the start' by introducing the mechanisms — multiplier and sub-quota — that will help driving the uptake of green, sustainable fuels,” said Maria Skipper Schwenn, the organisation’s executive director of climate, environment and security. The call has been made as the EU continues trilogue negotiations on the FuelEU Maritime package after the European Parliament approved the package with some amendments last October. The reduction of greenhouse gas intensity of shipping was amended to 80% by 2050 from 75%, compared with 2020 levels. New measures will require companies with more than three vessels to use at least 2% of renewable fuels of non-biological origin on board ships from 2030 pending approval from trilogue negotiations. The letter asks the EU to maintain this quota for renewable fuels to drive industrial production and enable economically efficient prices. Maritime groups also called on the EU to remove the exemption for smaller shipowners, arguing that large as well as small shipping companies must pull in the same direction. Other proposals by the 47 signatories were rewarding investments for net-zero emission vessels and financial support for the fuel and technological transition. “We support the Parliament’s proposal to allow companies that own ships outside the scope of the regulation to bank their compliance surplus, on a voluntary basis, when fully powered by renewable energy, including wind propulsion,” the letter says. “The FuelEU Maritime Regulation will be crucial for setting the course for the future development of the maritime industry. To achieve the necessary goal of decarbonising shipping, it must proactively and consistently set the incentives and a sufficient level of ambition.”