FuelEU Maritime and Maritime Market-Based Measures (MBM): A Simple Guide to Additionality

Understanding the Clean Cargo Methodology and What’s Changing

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Our latest video explains how Sustainable Marine Fuel (SMF) is handled under the EU’s FuelEU Maritime regulation, as the shipping sector moves away from fossil fuels. Emissions from fuel burned onboard are Scope 1 for shipping lines and Scope 3 for cargo owners. SMF offers a way to reduce these emissions.

The video walks through three cases:
  • Voluntary Market: Cargo owners can claim lower Scope 3 emissions by purchasing Low Emission Transport Services (LETS), even if SMF isn’t burned on the same vessel.
  • Regulatory Action: Under FuelEU Maritime, shipping lines must meet GHG intensity targets. SMF used for compliance reduces emissions for all cargo owners, but its benefits can’t be sold separately.
  • Combination: In real-world scenarios, SMF is used for both compliance and voluntary action. Benefits from compliance are shared across cargo owners, while voluntary SMF is assigned only to those who pay for LETS.
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