In the evolving landscape of maritime regulations, two significant initiatives stand out: FuelEU vs EU ETS (EU Emissions Trading System). While both are critical to the industry’s shift toward sustainability, they serve distinct purposes. Understanding the differences between FuelEU vs EU ETS is key to navigating these changes effectively.
FuelEU is all about driving the maritime sector towards cleaner, sustainable fuels. It aims to reduce the carbon intensity of maritime fuels by setting stricter limits over time and encouraging the use of alternative energy sources like advanced biofuels and hydrogen. Unlike the EU ETS, FuelEU covers all greenhouse gases (GHGs)—including CO2, methane, and nitrous oxide—on a Well-to-Wake basis, targeting the entire lifecycle of fuels and pushing for a transition to alternative fuels. You can learn more about FuelEU vs EU ETS from our post on the subject here.
EU ETS takes a different approach. This cap-and-trade system focuses specifically on CO2 emissions on a Tank-to-Wake basis. It sets a cap on these emissions and requires shipping companies to manage their CO2 output through tradable allowances. While FuelEU aims for a broad impact on all GHGs, the EU ETS zeroes in on CO2 emissions, driving reductions through a regulatory framework that aligns with the EU’s broader climate goals. It is important to note, that from 2026, GHG will also be included in EU ETS.
Both initiatives are crucial, but each plays a distinct role in steering the maritime industry towards a more sustainable future. Understanding FuelEU vs EU ETS helps clarify how these regulations contribute to reducing the maritime sector’s environmental footprint.
Confused about the concepts of Well-to-Wake and Tank-to-Wake? We have a clarifier for those as well here.