(1)

Maritime transport accounts for around 75 % of EU external trade and 31 % of EU internal trade in terms of volume . At the same time, ship traffic to or from ports in the European Economic Area accounts for some 11 % of all EU CO2 emissions from transport and 3-4 % of total EU CO2 emissions . 400 million passengers embark or disembark annually in ports of Member States, including around 14 million on cruise ships. Maritime transport is therefore an essential component of Europe’s transport system and plays a critical role for the European economy. The maritime transport market is subject to strong competition between economic actors in the Union and beyond for which a level playing field is indispensable. The stability and prosperity of the maritime transport market and its economic actors rely on a clear and harmonised policy framework where maritime transport operators, ports and other actors in the sector can operate on the basis of equal opportunities. Where market distortions occur, they risk putting ship operators or ports at a disadvantage compared to competitors within the maritime transport sector or in other transport sectors. In turn, this can result in a loss of competitiveness of the maritime transport industry, and a loss of connectivity for citizens and businesses

(1)

Maritime transport accounts for around 75 % of EU external trade and 31 % of EU internal trade in terms of volume. 400 million passengers embark or disembark annually in ports of Member States, including around 14 million on cruise ships. Maritime transport is therefore an essential component of Europe’s transport system and plays a critical role for the European economy. The maritime transport market is subject to strong competition between economic actors in the Union and beyond for which a  global level playing field is indispensable. The stability and prosperity of the maritime transport market and its economic actors rely on a clear and harmonised policy framework where maritime transport operators, ports and other actors in the sector can operate on the basis of equal opportunities. Where market distortions occur, they risk putting ship operators or ports at a disadvantage compared to competitors within the maritime transport sector or in other transport sectors. In turn, this can result in a loss of competitiveness of the maritime transport industry, fewer jobs and a loss of connectivity for citizens and businesses.

(1a)

The maritime sector employs 2 million Europeans and contributes EUR 149 billion to the economy. For every EUR 1 million generated in the shipping industry, EUR 1,8  million are generated elsewhere in the EU economy.  (1a)

(1b)

Maritime transport is the most environmentally friendly transport mode with significantly lower greenhouse gas emissions per tonne of goods transported compared to other modes  (1a) . At the same time, ship traffic to or from ports in the European Economic Area accounts for some 11 % of all EU CO2 emissions from transport and 3 to 4 % of total EU CO2 emissions. CO2 emissions from maritime transport are expected to increase, unless further action is taken. All sectors of the economy must contribute to the swift reduction of GHG emissions towards net-zero GHG emissions by 2050 at the latest as enshrined in Regulation (EU) 2021/1119. It is therefore essential for the Union to set out an ambitious pathway for the swift ecological transition of the maritime sector, which would also contribute to maintaining and further promoting its global leadership in the green technologies, services and solutions, and to further stimulating job creation in the related value chains while retaining competitiveness.

(2)

To enhance the Union’s climate commitment under the Paris Agreement and set out the steps to be taken to achieve climate neutrality by 2050, and to translate the political commitment into a legal obligation, the Commission adopted the (amended) proposal for a Regulation of the European Parliament and of the Council on establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (19) as well as the Communication ‘Stepping up Europe’s 2030 climate ambition’ (20) . This also integrates the target of reducing greenhouse gas (GHG) emissions by at least 55 % compared to 1990 levels by 2030. Accordingly, various complementary policy instruments are needed to motivate the use of sustainably produced renewable and low-carbon fuels, included in the maritime transport sector. The necessary technology development and deployment has to happen by 2030 to prepare for much more rapid change thereafter.

(2)

To enhance the Union’s climate commitment under the Paris Agreement and set out the steps to be taken to achieve climate neutrality by 2050 at the latest , and to translate the political commitment into a legal obligation, the Commission adopted the (amended) proposal for a Regulation of the European Parliament and of the Council on establishing the framework for achieving climate neutrality and amending Regulation (EU) 2018/1999 (European Climate Law) (19) as well as the Communication ‘Stepping up Europe’s 2030 climate ambition’ (20). This also integrates the target of reducing greenhouse gas (GHG) emissions by at least 55 % compared to 1990 levels by 2030. Accordingly, various complementary policy instruments are needed to promote and speed up a large-scale production and the use of sustainably produced renewable and low-carbon fuels, included in the maritime transport sector , whilst respecting the principle of technological neutrality . The necessary technology development and deployment should be supported as soon as possible and must be under way by 2030 to prepare for much more rapid change thereafter. It is also essential to foster innovation and to support research for emerging and future innovation such as emerging alternative fuels, eco-design, bio based materials, wind propulsion and wind-assisted propulsion.

(2a)

LNG is likely to play a transitional role in maritime transport, enabling a gradual transition towards zero-emission alternatives, especially where there is currently no economically viable zero-emission powertrain technology available. The Communication on the Smart and Sustainable Mobility Strategy points to zero-emission seagoing ships becoming market ready by 2030. Fleet conversion should take place gradually due to the long lifespan of the ships. Transport fuels such as LNG need increasingly to be decarbonised by blending with liquefied biomethane (bio-LNG) or renewable and low-carbon synthetic gaseous e-fuels (e-gas) for instance.

(3)

In the context of fuel transition to renewable and low carbon fuels and substitute sources of energy, it is essential to ensure the proper functioning of and fair competition in the EU maritime transport market regarding marine fuels, which account for a substantial share of ship operators’ costs. Differences in fuel requirements across Member States of the Union can significantly affect ship operators’ economic performance and negatively impact competition in the market. Due to the international nature of shipping, ship operators may easily bunker in third countries and carry large amounts of fuel. This may lead to carbon leakage and detrimental effects on the competitiveness of the sector if the availability of renewable and low carbon fuels in maritime ports under the jurisdiction of a Member State is not accompanied by requirements for their use that apply to all ship operators arriving at and departing from ports under the jurisdiction of Member States. This Regulation should lay down measures to ensure that the penetration of renewable low-carbon fuels in the marine fuels market takes place under the conditions of fair competition on the EU maritime transport market.

(3)

In the context of fuel transition to renewable and low carbon fuels and substitute sources of energy, it is essential to ensure the proper functioning of and fair competition in the EU maritime transport market regarding marine fuels, which account for a substantial share of ship operators’ costs - typically between 35 % and 53 % of shipping freight rates. Policy measures must therefore be cost-effective and aim to generate the largest possible decarbonisation at the lowest possible cost . Differences in fuel requirements across Member States of the Union can significantly affect ship operators’ economic performance and negatively impact competition in the market. Due to the international nature of shipping, ship operators may easily bunker in third countries and carry large amounts of fuel , which could also contribute to a risk of loss of competitiveness of Union ports vis-à-vis non-Union ports . This may lead to carbon leakage and business leakage and detrimental effects on the competitiveness of the sector if the availability of renewable and low carbon fuels in maritime ports under the jurisdiction of a Member State is not accompanied by requirements for their use that apply to all ship operators arriving at and departing from ports under the jurisdiction of Member States. This Regulation should lay down measures to ensure that the penetration of renewable and low-carbon fuels in the marine fuels market takes place under the conditions of fair competition on the EU maritime transport market , leaving shipping operators a lower abatement cost option . The availability of such an option is essential to guarantee the competitiveness of European shipping industries and the relevance of logistic routes linking European ports with global trade.

(3a)

The maritime sector is characterised by fierce international competition. Major differences in regulatory burdens across flag states have exacerbated unwanted practices such as the reflagging of vessels. The sector's intrinsic global character underlines the importance of a flag-neutral approach and of a favourable regulatory environment, which is a precondition for attracting new investment and safeguarding the competitiveness of European ports, ship owners and operators.

(4)

In order to produce an effect on all the activities of the maritime transport sector, it is appropriate that this Regulation covers a share of the voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country. This Regulation should thus apply to half of the energy used by a ship performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the of the energy used by a ship performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, the entirety of the energy used by a ship performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and the energy used at berth in a port under the jurisdiction of a Member State. Such coverage of a share of the energy used by a ship in both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of this Regulation, including by increasing the positive impact on the environment of such framework. Simultaneously, such framework limits the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. In order to ensure smooth operation of maritime traffic, a level playing field among maritime transport operators and among ports, and avoid distortions in the internal market, all journeys arriving or departing from ports under jurisdiction of Member States, as well as the stay of ships in those ports should be covered by uniform rules contained in this Regulation.

(4)

In order to produce an effect on all the activities of the maritime transport sector, it is appropriate that this Regulation covers a share of the voyages between a port under the jurisdiction of a Member State and port under the jurisdiction of a third country. This Regulation should thus apply to half of the energy used by a ship performing voyages arriving at a port under the jurisdiction of a Member State from a port outside the jurisdiction of a Member State, half of the of the energy used by a ship performing voyages departing from a port under the jurisdiction of a Member State and arriving at a port outside the jurisdiction of a Member State, the entirety of the energy used by a ship performing voyages arriving at a port under the jurisdiction of a Member State from a port under the jurisdiction of a Member State, and the energy used at berth in a port under the jurisdiction of a Member State. Such coverage of a share of the energy used by a ship in both incoming and outgoing voyages between the Union and third countries ensures the effectiveness of this Regulation, including by increasing the positive impact on the environment of such framework. This framework should limit the risk of evasive port calls and the risk of delocalisation of transhipment activities outside the Union. In order to ensure smooth operation of maritime traffic, a level playing field among maritime transport operators and among ports, and avoid distortions in the internal market, all journeys arriving or departing from ports under jurisdiction of Member States, as well as the stay of ships in those ports should be covered by uniform rules contained in this Regulation. The Commission should set up a monitoring scheme specifically to assess carbon leakage and business leakage, as well as potential evasive practices, and draft a list of potential business activities that do not fall under significant business activities performed at neighbouring EU port calls. In doing so, if significant carbon leakage and business leakage as well as evasive practices are reported, the Commission should propose measures to tackle these issues.

(4a)

Given that this Regulation will impose additional compliance costs on the sector, compensatory actions need to be taken in order to prevent the total level of regulatory burden from increasing. Before the application of this Regulation, the Commission should therefore present proposals offsetting the regulatory burdens introduced by this Regulation, through the amendment or repeal of provisions in other Union legislative acts that generate regulatory burdens in the maritime sector.

(4b)

In order to ensure the necessary degree of legal and investment certainty, this Regulation should be closely aligned to and consistent with Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation), the Directive2003/87/EC (EU ETS), Directive XXXX-XXX (Renewable Energy Directive), and Directive 2003/96/EC (Energy Taxation Directive). Such alignment should result in a coherent legislative framework for the shipping sector, that contributes to significantly increasing the production of sustainable alternative fuels, ensures the deployment of the necessary infrastructure and incentivises the use of these fuels in a steadily growing share of vessels. In order to ensure overall consistency with the Union’s climate, competitiveness and ‘sustainable economic growth’ targets the overarching, combined and cumulative climate and economic impacts of those legislative acts should be evaluated comprehensively and continuously.

(4c)

The obligation for ports to provide an on-shore power supply should be matched by a corresponding obligation for ships to connect to the charging infrastructure designed to deliver that power supply while at berth, in order to ensure the effectiveness of that infrastructure and avoid the risk of stranded assets. Furthermore, efforts should be made to reduce the costs associated with on-shore charging by permanently exempting electricity supplied to vessels in port from taxation through amendments to Directive XXXX-XXXX (Energy Taxation Directive).

(5a)

With the increased costs of shipping for the vessels which do not comply with the requirements of this Regulation, the risk of evasive behaviour and circumvention of the provisions of this Regulation, in particular on the segment of liner container trade, should be addressed. Port calls to ports in the Union’s vicinity in order to limit the costs of compliance with this Regulation would not only diminish the environmental benefits expected and significantly undermine the objectives pursued by this Regulation, but could lead to additional emissions, due to the extra distance travelled to evade the application of this Regulation. It is therefore appropriate to exclude from the concept of port of call certain stops at non-Union ports. That exclusion should target ports in the Union’s vicinity where the risk of evasion is the greatest. A limit of 300 nautical miles constitutes a proportionate response to that risk, balancing the additional burden and the risk of evasion. Moreover, the exclusion from the concept of port of call should only target containerships and ports the main activity of which is the transshipment of containers. For such shipments, the risk of evasion also consists in a shift of port hub to ports outside the Union aggravating the effects of the evasion. For this reason, and in the absence of an IMO mandatory scheme on the use of renewable and low carbon fuels for international voyages at the global level that has a similar level of ambition to that of the requirements set out in this Regulation, stops of containerships in a neighbouring container transshipment port should not be considered to be stops in ports of calls within the meaning of this Regulation. In order to ensure that the measure is proportional to the objectives pursued and results in equal treatment, measures in third countries that have an effect equivalent to this Regulation should be taken into account.

(5b)

In order to take into account the specific situation of island regions, as underlined in Article 174 of the Treaty, and the need to preserve connectivity between islands and peripheral regions with central regions of the Union, temporary exemptions should be allowed for voyages performed by passenger ships other than cruise passenger ships between a port of call under the jurisdiction of a Member State and a port of call under the jurisdiction of the same Member State located in an island with fewer than 100 000 permanent residents.

(5c)

Taking into account the special characteristics of the outermost regions of the Union, notably their remoteness and insularity, and the constraints to which they are subject, special consideration should be given to preserving their accessibility, and the ability to connect to them efficiently by means of maritime transport. Therefore, only half of the energy used on voyages departing from or arriving to a port of call located in an outermost region should be included in the scope of this Regulation. For the same reason, temporary exemptions should be allowed for voyages between a port of call located in an outermost region and another port of call located in an outermost region, and to the energy used during their stay within the port of calls of the corresponding outermost regions.

(5d)

To ensure a level playing field for ships, including those built to operate in ice-covered waters on their way to, from or between Member State ports, specific information relating to a ship's ice class, and to its navigation through ice, should be considered when calculating GHG emission reductions on a vessel basis, as well as in the data monitored and reported on the basis of the Regulation (EU) 2015/757.

(6)

The person or organisation responsible for the compliance with this Regulation should be the shipping company, defined as the shipowner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the shipowner and that, on assuming such responsibility, has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention. This definition is based on the definition of ‘company’ in Article 3, point (d) of Regulation (EU) 2015/757 of the European Parliament and of the Council (21), and in line with the global data collection system established in 2016 by the International Maritime Organization (IMO). In line with the polluter pays principle, the shipping company could, by means of a contractual arrangement, hold the entity that is directly responsible for the decisions affecting the greenhouse gas intensity of the energy used by the ship accountable for the compliance costs under this Regulation. This entity would normally be the entity that is responsible for the choice of fuel, route and speed of the ship.

(6)

The person or organisation responsible for the compliance with this Regulation should be the shipping company, defined as the ship-owner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the ship-owner and that, on assuming such responsibility, has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention. This definition is based on the definition of ‘company’ in Article 3, point (d) of Regulation (EU) 2015/757 of the European Parliament and of the Council (21), and in line with the global data collection system established in 2016 by the International Maritime Organization (IMO). In line with the polluter pays principle, the shipping company could, by means of a contractual arrangement, hold the entity that is directly responsible for the decisions affecting the greenhouse gas intensity of the energy used by the ship accountable for the compliance costs under this Regulation. This entity would normally be the entity that is responsible for the choice of fuel, route and speed of the ship.

(7)

In order to limit the administrative burden, in particular that of smaller operators, this Regulation should not apply to wooden ships of a primitive build and ships not propelled by mechanical means and focus on ships with a gross tonnage above 5 000 . Even though these latter ships represent only approximately 55 % of all ships calling at ports under the Regulation (EU) 2015/757 of the European Parliament and of the Council, they are responsible for 90 % of the carbon dioxide (CO2) emissions from the maritime sector.

(7)

In order to limit the administrative burden, in particular that of smaller operators, this Regulation should not apply to wooden ships of a primitive build and focus on ships with a gross tonnage above 5 000 . Even though these latter ships represent only approximately 55 % of all ships calling at ports under the Regulation (EU) 2015/757 of the European Parliament and of the Council, they are responsible for 90 % of the carbon dioxide (CO2) emissions from the maritime sector.

(7a)

In order to ensure the continuing effectiveness of this Regulation, the Commission should monitor its functioning, carrying out impact assessments in respect of the gross tonnage threshold and the ship types covered by this Regulation. The Commission should, in particular, decide whether there are significant reasons to encompass smaller ships and additional ship types within the scope of this Regulation. The Commission should in particular take into account considerations such as the availability of relevant data, the potential GHG emissions reduction and the effectiveness of a scope widening in terms of climate impact, the scale of administrative burden, as well as financial and social consequences thereof.

(9)

While instruments such as carbon pricing or targets on the carbon intensity of activity promote improvements in energy efficiency, they are not suited to bring about a significant shift towards renewable and low-carbon fuels in the short and medium term. A specific regulatory approach dedicated to the deployment of renewable and low-carbon marine fuels and substitute sources of energy, such as wind or electricity, is therefore necessary.

(9)

While instruments such as carbon pricing or targets on the carbon intensity of activity promote improvements in energy efficiency, they are not suited to bring about a significant shift towards renewable and low-carbon fuels in the short and medium term. A specific regulatory approach dedicated to the deployment of renewable and low-carbon marine fuels and substitute sources of energy, such as wind or electricity, is therefore necessary. That approach should be implemented in a goal-based, technology-neutral and cost-effective manner.

(10)

Policy intervention to stimulate demand of renewable and low-carbon maritime fuels should be goal-based and respect the principle of technological neutrality. Accordingly, limits should be set on the greenhouse gas intensity of the energy used on-board by ships without prescribing the use of any particular fuel or technology.

(10)

Policy intervention to stimulate demand of renewable and low-carbon maritime fuels should be goal-based and respect the principle of technological neutrality. Accordingly, ambitious limits , in line with the goals of the Paris Agreement, should be set on the greenhouse gas intensity of the energy used on-board by ships without prescribing the use of any particular fuel or technology.

(10a)

A dedicated Ocean Fund should be established, channelling revenues generated from the auctioning of maritime allowances within the ETS back to the maritime sector. Funds provided under the Ocean Fund should be used to support projects and investments related to the improvement of the energy efficiency of ships and ports, to innovative technologies and infrastructure for decarbonising maritime transport, to the production and deployment of sustainable alternative fuels and to the development of zero-emission propulsion technologies.

(11)

Development and deployment of renewable and low carbon fuels with a high potential for sustainability, commercial maturity and a high potential for innovation and growth to meet future needs should be promoted. This will support creating innovative and competitive fuels markets and ensure sufficient supply of sustainable maritime fuels in the short and long term to contribute to Union transport decarbonisation ambitions, while strengthening Union’s efforts towards a high level of environmental protection. For this purpose, sustainable maritime fuels produced from feedstock listed in Parts A and B of Annex IX of Directive (EU) 2018/2001, as well as synthetic maritime fuels should be eligible. In particular, sustainable maritime fuels produced from feedstock listed in Part B of Annex IX of Directive (EU) 2018/2001 are essential, as currently the most commercially mature technology to decarbonise martime transport already in the short term.

(11)

Development and deployment of renewable and low carbon fuels and propulsion technologies with a high potential for sustainability, commercial maturity and a high potential for innovation and growth to meet future needs should be promoted. This will support creating innovative and competitive fuels markets and ensure sufficient supply of sustainable maritime fuels in the short and long term to contribute to Union transport decarbonisation ambitions, while strengthening Union’s efforts towards a high level of environmental protection. For this purpose, sustainable maritime fuels produced from feedstock listed in Parts A and B of Annex IX of Directive (EU) 2018/2001, as well as synthetic maritime fuels should be eligible. In particular, sustainable maritime fuels produced from feedstock listed in Part B of Annex IX of Directive (EU) 2018/2001 are essential, as currently the most commercially mature technology to decarbonise maritime transport already in the short term.

(11a)

In order to encourage the early market development and deployment of the most sustainable and innovative fuel technologies with growth potential to meet future needs, a dedicated incentive for renewable fuels of non-biological origin (RFNBO) is necessary. This family of fuels has high potential to introduce renewable energy into the marine bunker fuel mix. In view of significantly higher production costs for RFNBOs in the short and medium terms, it is important to ensure a degree of demand that supports investment in such family of fuels. This Regulation introduces a combination of measures to ensure the support to the uptake of sustainable RFNBOs. These include (a) a multiplier until 2035 to reward companies that decide to opt for these fuels despite their relatively high price, and (b) from 2030 a fixed minimum share of RFNBOs in the fuel energy mix. To facilitate compliance with the minimum share of RFNBOs, flexibility measures according to Articles 17 and 18 of this Regulation should apply. Companies can, by means of contractual arrangements, hold the fuel suppliers accountable for the compliance costs under this Regulation, if RFNBOs were not delivered according to agreed conditions.

(13)

However, this approach must be stricter in the maritime sector. The maritime sector has currently insignificant levels of demand for food and feed crops-based biofuels, bioliquids and biomass fuels, since over 99 % of currently used marine fuels are of fossil origin. Therefore, the non-eligibility of food and feed crop-based fuels under this Regulation also minimises any risk to slow down the decarbonisation of the transport sector, which could otherwise result from a shift of crop-based biofuels from the road to the maritime sector. It is essential to minimise such a shift, as road transport currently remains by far the most polluting transport sector and the maritime transport currently uses predominanetly fuels of fossil origin. It is therefore appropriate to avoid the creation of a potentially large demand of food and feed crops-based biofuels, bioliquids and biomass fuels by promoting their use under this Regulation. Accordingly, the additional greenhouse gas emissions and loss of biodiversity caused by all types of feed and food crop-based fuels require that these fuels be considered to have the same emission factors as the least favourable pathway.

(13)

However, this approach must be stricter in the maritime sector. The maritime sector has currently insignificant levels of demand for food and feed crops-based biofuels, bioliquids and biomass fuels, since over 99 % of currently used marine fuels are of fossil origin. Therefore, the non-eligibility of food and feed crop-based fuels under this Regulation also minimises any risk to slow down the decarbonisation of the transport sector, which could otherwise result from a shift of crop-based biofuels from the road to the maritime sector. It is essential to minimise such a shift, as road transport currently remains by far the most polluting transport sector and the maritime transport currently uses predominantly fuels of fossil origin. It is therefore appropriate to avoid the creation of a potentially large demand of food and feed crops-based biofuels, bioliquids and biomass fuels by promoting their use under this Regulation. Accordingly, the additional greenhouse gas emissions and loss of biodiversity caused by all types of feed and food crop-based fuels require that these fuels be considered to have the same emission factors as the least favourable pathway.

(14)

The long lead times associated to the development and deployment of new fuels and energy solutions for maritime transport require rapid action and the establishment of a clear and predictable long-term regulatory framework facilitating planning and investment from all the stakeholders concerned. A clear and stable long-term regulatory framework will facilitate the development and deployment of new fuels and energy solutions for maritime transport, and encourage investment from stakeholders. Such framework should define limits for the greenhouse gas intensity of the energy used on-board by ships until 2050. Those limits should become more ambitious over time to reflect the expected technology development and increased production of marine renewable and low carbon fuels.

(14)

The long lead times associated with the development and deployment of new fuels and energy solutions for maritime transport , as well as the long average lifespan of ships, which typically range between 25 and 30 years, require rapid action and the establishment of a clear and predictable long-term regulatory framework facilitating planning and investment from all the stakeholders concerned. A clear and stable long-term regulatory framework will facilitate the development and deployment of new fuels and energy solutions for maritime transport, and encourage investment from stakeholders. Such framework should define limits for the greenhouse gas intensity of the energy used on-board by ships , both during navigation and at berth, until 2050. Those limits should become more ambitious over time to reflect the expected technology development and increased production of marine renewable and low carbon fuels. To ensure legal certainty and to allow sufficient time for the sector to plan and prepare for the long-term, as well as to avoid the risk of stranded assets, any future proposals to amend this Regulation should be limited in scope and should avoid significant changes to the requirements.

(15)

This Regulation should establish the methodology and the formula that should apply to calculate the yearly average greenhouse gas intensity of the energy used on-board by a ship. This formula should be based on the fuel consumption reported by ships and consider the relevant emission factors of these fuels. The use of substitute sources of energy, such as wind or electricity, should also be reflected in the methodology.

(15)

This Regulation should establish the methodology and the formula that should apply to calculate the yearly average greenhouse gas intensity of the energy used on-board by a ship. This formula should be based on the fuel consumption reported by ships and consider the relevant emission factors of these fuels. The use of substitute sources of energy, such as wind or solar power, generated on-board, or electricity provided at berth, should also be reflected in the methodology.

(16)

In order to provide a more complete picture of the environmental performance of the various energy sources, the GHG performance of fuels should be assessed on a well-to-wake basis, taking into account the impacts of energy production, transport, distribution and use on-board. This is to incentivise technologies and production pathways that provide a lower GHG footprint and real benefits compared to the existing conventional fuels.

(16)

In order to provide a more complete picture of the environmental performance of the various energy sources, the GHG performance of fuels should be assessed on a well-to-wake basis, taking into account the impacts of energy production, transport, distribution and use on-board , accounting for the footprints of the various stages of the fuel lifecycle . This is to incentivise technologies and production pathways that provide a lower GHG footprint and real benefits compared to the existing conventional fuels.

(17)

The well-to-wake performance of renewable and low-carbon maritime fuels should be established using default or actual and certified emission factors covering the well-to-tank and tank-to-wake emissions. The performance of fossil fuels should however only be assessed through the use of default emission factors as provided for by this Regulation.

(17)

The well-to-wake performance of maritime fuels should be established using default or actual and certified emission factors covering the well-to-tank and tank-to-wake emissions.

(21)

The use of on-shore power supply (OPS) abates air pollution produced by ships as well as reduces the amount of GHG emissions generated by maritime transport. OPS represents an increasingly clean power supply available to ships at berth, in view of the growing renewables share in the EU electricity mix. While only the provision on OPS connection points is covered by Directive 2014/94/EU (Alternative Fuels Infrastructure Directive — AFID), the demand for and, as a result, the deployment of this technology has remained limited. Therefore specific rules should be established to mandate the use of OPS by the most polluting ships.

(21)

The use of on-shore power supply (OPS) abates air pollution produced by ships at berth as well as reduces the amount of GHG emissions generated by maritime transport when at berth . OPS represents an increasingly clean power supply available to ships at berth, in view of the growing shares of renewables and fossil free energy sources in the EU electricity mix. While only the provision on OPS connection points is covered by Directive 2014/94/EU (Alternative Fuels Infrastructure Directive — AFID), the demand for and, as a result, the deployment of this technology has remained limited. To ensure that air pollution at berth is abated and that OPS infrastructure is economically viable and delivers a return on investment, specific rules should be established to mandate the use of OPS by the most polluting ships in situations where that use would effectively reduce emissions at a reasonable cost .

(22)

In addition to OPS, other technologies might be capable of offering equivalent environmental benefits in ports. When the use of an alternative technology is demonstrated to be equivalent to the use of OPS, a ship should be exempted from its use of OPS.

(22)

In addition to OPS, other zero emission technologies might be capable of offering equivalent environmental benefits in ports. When the use of an alternative technology is demonstrated to be equivalent to the use of OPS, in terms of air pollution and GHG emissions reduction, a ship should be exempted from its use of OPS.

(23)

Exceptions to the use of OPS should also be provided for a number of objective reasons, certified by the managing body of the port of call and limited to unscheduled port calls for reasons of safety or saving life at sea, for short stays of ships at berth of less than two hours as this is the minimum time required for connection, and for the use of on-board energy generation under emergency situations.

(23)

Exceptions to the use of OPS should also be provided for a number of objective reasons, certified by the managing body of the port of call , the terminal operator or the competent authority, depending on the governance model for ports in the different Member States. Those exceptions should be limited to unscheduled port calls for reasons of safety or saving life at sea, for short stays of ships at berth of less than two hours as this is the minimum time required for connection, and for the use of on-board energy generation under emergency situations. If it is impossible to supply sufficient on-shore power, due to insufficient capacity in the local grid connected to the port, this should not be considered to be a failure by the port or by the ship owner or operator to comply with the requirements of this Regulation, provided that the insufficient local grid capacity is duly attested by the grid manager to the verifiers.

(24)

Exceptions in case of unavailability or incompatibility of OPS should be limited after ship and port operators have had sufficient time to make the necessary investments, in order to provide the necessary incentives for those investments and avoid unfair competition. As of 2035, ship operators should plan carefully their port calls to make sure that they can carry out their activities without emitting air pollutants and GHG at berth and compromise the environment in coastal areas and port cities. A limited number of exceptions in case of unavailability or incompatibility of OPS shoud be maintained in order to provide the possibility for occasional last-minute changes in port call schedules and calls in ports with incompatible equipment.

(24)

Exceptions in case of unavailability or incompatibility of OPS should be limited after ship and port operators have had sufficient time to make the necessary investments, in order to provide the necessary incentives for those investments and avoid unfair competition. In order to ensure full interoperability, ports should equip their berths, and ship owners their vessels, with power installations that comply with applicable standards. From 2035, ship operators should plan carefully their calls at TEN-T ports covered by the Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation) to make sure that they can carry out their activities without emitting air pollutants and GHG at berth and compromise the environment in coastal areas and port cities. A limited number of exceptions in case of unavailability or incompatibility of OPS should be maintained in order to provide the possibility for occasional last-minute changes in port call schedules and calls in ports with incompatible equipment. In order to mitigate the risk of stranded assets, incompatibility of OPS infrastructure on board and at berth as well as alternative fuel demand and supply imbalances, frequent consultation meetings between relevant stakeholders should be organised to discuss and take decisions on requirements and future plans.

(24a)

The targets for provision of OPS laid down in Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation) take into account the types of vessels served and the respective traffic volumes of maritime ports. The requirement for ships to connect to OPS while at berth should not apply to vessels when calling at ports outside the scope of the OPS requirement by that Regulation, unless the port has OPS installed and available at the visited berth. If a ship calls at a non-TEN-T port at which OPS is available, that ship should connect to the OPS while at berth.

(24b)

Even if OPS is an important tool to reduce local emissions of air pollutants, its potential to reduce greenhouse gas emissions depends entirely on the energy mix that is fed through the cables. To realise the full climate and environmental potential of OPS, Member States should increase the capacity and connectivity of electricity grids and continue to reduce the GHG intensity of their energy mixes, so as to provide ports with affordable, plannable and fossil free electricity.

(24c)

The implementation of this Regulation should take due account of the diverse governance models for ports across the Union, in particular as regards the responsibility for issuing a certificate exempting a vessel from the obligation to connect to OPS.

(24d)

Coordination between ports and ship operators is crucial to ensure smooth connection procedures to on-shore power in ports. Ship operators should inform the ports they call at about their intentions to connect to on-shore power and the amount of power needed during the given call, in particular when it exceeds the estimated needs for this ship category.

(25)

A robust monitoring, reporting and verification system should be put in place by this Regulation in order to trace compliance with its provisions. Such system should apply in a non-discriminatory way to all ships and require third party verification in order to ensure the accuracy of the data submitted within this system. In order to facilitate achieving the objective of this Regulation, any data already reported for the purpose of Regulation (EU) 2015/757 should be used, when necessary, for verifying compliance with this Regulation in order to limit administrative burden imposed on companies, verifiers and maritime authorities.

(25)

A robust and transparent monitoring, reporting and verification system should be put in place by this Regulation in order to trace compliance with its provisions. Such system should apply in a non-discriminatory way to all ships and require third party verification in order to ensure the accuracy of the data submitted within this system. In order to facilitate achieving the objective of this Regulation, any data already reported for the purpose of Regulation (EU) 2015/757 should be used, when necessary, for verifying compliance with this Regulation in order to limit administrative burden imposed on companies, verifiers and maritime authorities.

(26)

Companies should be responsible for monitoring and reporting the amount and type of energy used on-board by ships in navigation and at berth, as well as other relevant information, such as information on the type of engine on board or presence of wind assisting technologies, with a view to showing compliance with the limit on the greenhouse gas intensity of the energy used on-board by a ship set out by this Regulation. To facilitate the fulfilment of these monitoring and reporting obligations and the verification process by the verifiers, similarly to Regulation (EU) 2015/757, companies should document the envisaged monitoring method and provide further details on the application of the rules of this Regulation in a monitoring plan. The monitoring plan, as well as its subsequent modifications, if applicable, should be submitted to the verifier.

(26)

Companies should be responsible for monitoring and reporting the amount and type of energy used on-board by ships in navigation and at berth, as well as other relevant information, such as information on the type of engine on board and the technical specification of the wind assisting technologies , or any other alternative source of energy present on-board , with a view to showing compliance with the limit on the greenhouse gas intensity of the energy used on-board by a ship set out by this Regulation. To facilitate the fulfilment of these monitoring and reporting obligations and the verification process by the verifiers, similarly to Regulation (EU) 2015/757, companies should document the envisaged monitoring method and provide further details on the application of the rules of this Regulation in a monitoring plan. The monitoring plan, as well as its subsequent modifications, if applicable, should be submitted to the verifier.

(27)

Certification of fuels is essential to achieve the objectives of this Regulation and guarantee the environmental integrity of the renewable and low-carbon fuels that are expected to be deployed in the maritime sector. Such certification should be undertaken by means of a transparent and non-discriminatory procedure. With a view to facilitating certification and limiting the administrative burden, the certification of biofuels, biogas, renewable fuels of non-biological origin and recycled carbon fuel should rely on the rules established by Directive (EU) 2018/2001. This approach of certification should also apply to fuels bunkered outside the Union, which should be considered as imported fuels, in a similar way as Directive (EU) 2018/2001. When companies intend to depart from the default values provided for by that Directive or this new framework, this should only be done when values can be certified by one of the voluntary schemes recognised under Directive (EU) 2018/2001 (for well-to-tank values) or by means of laboratory testing or direct emissions measurements (tank-to-wake).

(27)

A robust certification and monitoring of fuels is essential to achieve the objectives of this Regulation and guarantee the environmental integrity of the renewable and low-carbon fuels that are expected to be deployed in the maritime sector. Such certification should be undertaken by means of a transparent and non-discriminatory procedure. With a view to facilitating certification and limiting the administrative burden, the certification of biofuels, biogas, renewable fuels of non-biological origin and recycled carbon fuel should rely on the rules established by Directive (EU) 2018/2001. This approach of certification should also apply to fuels bunkered outside the Union, which should be considered as imported fuels, in a similar way as Directive (EU) 2018/2001. When companies intend to depart from the default values provided for by that Directive or this new framework, this should only be done when values can be certified by one of the voluntary schemes recognised under Directive (EU) 2018/2001 (for well-to-tank values) or by means of direct emissions measurements (tank-to-wake).

(27a)

The reliability and accuracy of the information concerning the characteristics of fuels is essential for the enforcement of this Regulation. Fuel suppliers that have been proven to have provided misleading or inaccurate information about the greenhouse gas intensity of the fuels they supply should be subject to a penalty. Fuel suppliers who have repeatedly provided false or misleading information should be blacklisted from the certification schemes laid down in Directive (EU) 2018/2001 (Renewable Energy Directive). In such cases, any fuels bunkered from its facilities should be considered to have the same emission factor as the least favourable fossil fuel.

(28)

Verification by accredited verifiers should ensure the accuracy and completeness of the monitoring and reporting by companies and the compliance with this Regulation. In order to ensure impartiality, verifiers should be independent and competent legal entities and should be accredited by national accreditation bodies established pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council (24) .

(28)

Verification by accredited verifiers should ensure the accuracy and completeness of the monitoring and reporting by companies and the compliance with this Regulation. In order to ensure impartiality and effectiveness , verifiers should be independent and competent legal entities and should be accredited and overseen by national accreditation bodies established pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council (24).

(31a)

Companies and fuel suppliers could, by means of contractual arrangements, agree on mutual commitments to produce, supply and purchase predetermined quantities of certain fuels. Such contractual arrangements should also cover liability and establish conditions for financial compensation in cases where fuels are not made available as agreed.

(36)

The penalty imposed for each non-compliant port call should be proportionate to the cost of using the electricity and at sufficient level to have a dissuasive effect from the use of more polluting energy sources. The penalty should be based on the power installed on board the vessel, expressed in megawatts, multiplied by a fixed penalty in EUR per hour of stay at berth. Due to lack of accurate figures on the cost of providing OPS in the Union, this rate should be based on the EU average electricity price for non-household consumers multiplied by a factor of two to account for other charges related to the provision of the service, including among others connection costs and investment recovery elements.

(36)

The penalty imposed for each non-compliant port call should be proportionate to the cost of using the electricity and at sufficient level to have a dissuasive effect from the use of more polluting energy sources. The penalty should be based on the power installed on board the vessel, expressed in megawatts, multiplied by a fixed penalty in EUR per hour of stay at berth. Due to lack of accurate figures on the cost of providing OPS in the Union, this rate should be based on the most updated EU average electricity price for non-household consumers multiplied by a factor of two to account for other charges related to the provision of the service, including among others connection costs and investment recovery elements.

(37)

The revenues generated from the payment of penalties should be used to promote the distribution and use of renewable and low-carbon fuels in the maritime sector and help maritime operators to meet their climate and environmental goals. For this purpose these revenues should be allocated to the the Innovation Fund referred to in Article 10a(8) of Directive 2003/87/EC.

(37)

The revenues generated from the payment of penalties should be earmarked for the maritime sector and used to promote its decarbonisation, including support for alternative fuels development, production and deployment, alternative fuels infrastructure and OPS infrastructure, as well as new innovative technologies For this purpose these revenues should be allocated to the the Ocean Fund referred to in Article 3gab of Directive 2003/87/EC.

(39)

Given the importance of consequences that the measures taken by the verifiers under this Regulation may have for the companies concerned, in particular regarding the determination of non-compliant port calls, calculation of the amounts of penalties and refusal to issue a FuelEU certificate of compliance, those companies should be entitled to apply for a review of such measures to the competent authority in the Member State where the verifier was accredited. In the light of the fundamental right to an effective remedy, enshrined in Article 47 of the Charter of Fundamental Rights of the European Union, decisions taken by the competent authorities and the managing bodies of the port under this Regulation should be subject to judicial review, carried out in accordance with the national law of the Member State concerned.

(39)

Given the importance of consequences that the measures taken by the verifiers under this Regulation may have for the companies concerned, in particular regarding the determination of non-compliant port calls, the compiling of information for the calculation of the amounts of penalties and refusal to issue a FuelEU certificate of compliance, those companies should be entitled to apply for a review of such measures to the competent authority in the Member State where the verifier was accredited. In the light of the fundamental right to an effective remedy, enshrined in Article 47 of the Charter of Fundamental Rights of the European Union, decisions taken by the competent authorities and the managing bodies of the port under this Regulation should be subject to judicial review, carried out in accordance with the national law of the Member State concerned.

(40)

In order to maintain a level playing field through the efficient functioning of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendment of the list of well-to-wake emission factors, amendment of the list of the applicable zero-emission technologies or criteria for their use, to establish the rules on conducting the laboratory testing and direct emissions measurements, adaptation of the penalty factor, accreditation of verifiers, adaptation of the penalty factor, and modalities for the payment of penalties. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(40)

In order to maintain a level playing field through the efficient functioning of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendment of the list of well-to-wake emission factors, amendment of the list of the applicable zero-emission technologies or criteria for their use, to establish the rules on certifying actual well-to-tank emissions, the rules on conducting direct emissions measurements, adaptation of the penalty factor, accreditation of verifiers, adaptation of the penalty factor, and modalities for the payment of penalties. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(42)

Given the international dimension of the maritime sector, a global approach to limiting the greenhouse gas intensity of the energy used by ships is preferable as it could be regarded as more effective due to its broader scope. In this context, and with a view to facilitating the development of international rules within the International Maritime Organisation (IMO), the Commission should share relevant information on the implementation of this Regulation with the IMO and other relevant international bodies and relevant submissions should be made to the IMO. Where an agreement on a global approach is reached on matters of relevance to this Regulation, the Commission should review the present Regulation with a view to aligning it, where appropriate, with the international rules.

(42)

Given the international dimension of the maritime sector, a global approach to limiting the greenhouse gas intensity of the energy used by ships is preferable as it would be significantly more effective due to its broader scope. In this context, and with a view to facilitating the development of international rules within the International Maritime Organisation (IMO), the Commission should share relevant information on the implementation of this Regulation with the IMO and other relevant international bodies and relevant submissions should be made to the IMO , continuing the EU’s efforts to promote ambitious maritime decarbonisation targets on an international level . Where an agreement on a global approach is reached on matters of relevance to this Regulation, the Commission should review the present Regulation to align it with the international rules.

(42a)

To ensure an international level playing field and maximise the environmental impact of legislation on renewable and low-carbon fuels, the Commission and Members States should promote within the IMO and other international organisations robust certification and monitoring systems for renewable fuels.

(42b)

The Commission should ensure implementation and availability of tools for collaboration and exchange of best practices for the maritime transport sector, as defined in the ‘Better Regulation Guidelines’  (1a).

(43)

The uptake of renewable and low-carbon fuels and substitute sources of energy by ships arriving at, within or departing from ports under the jurisdiction of a Member State across the Union, is not an objective that can be sufficiently achieved by the Member States without risking to introduce barriers to the internal market and distortions of competition between ports and between maritime operators. This objective can be better achieved by introducing uniform rules at Union level that create economic incentives for maritime operators to continue operating unimpededly while meeting obligations on the use of renewable and low-carbon fuels. Accordingly, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

(43)

The development and large-scale uptake of renewable and low-carbon fuels and substitute sources of energy by ships arriving at, within or departing from ports under the jurisdiction of a Member State across the Union, is not an objective that can be sufficiently achieved by the Member States without risking to introduce barriers to the internal market and distortions of competition between ports and between maritime operators. This objective can be better achieved by introducing uniform rules at Union level that create economic incentives for maritime operators to continue operating unimpededly while meeting obligations on the use of renewable and low-carbon fuels. Accordingly, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective,

(a)

the limit on the greenhouse gas (‘GHG’) intensity of energy used on-board by a ship arriving at, staying within or departing from ports under the jurisdiction of a Member State and

(a)

a limit on the greenhouse gas (‘GHG’) intensity of energy used on-board by a ship arriving at, staying within or departing from ports under the jurisdiction of a Member State and

(b)

the obligation to use on-shore power supply or zero-emission technology in ports under the jurisdiction of a Member State,

(b)

an obligation to use on-shore power supply or zero-emission technology in ports under the jurisdiction of a Member State.

(b)

the entirety of the energy used on voyages from a port of call under the jurisdiction of a Member State to a port of call under the jurisdiction of a Member State, and

(b)

the entirety of the energy used on voyages from a port of call under the jurisdiction of a Member State to a port of call under the jurisdiction of a Member State,

(ba)

half of the energy used on voyages departing from or arriving at a port of call located in an outermost region under the jurisdiction of a Member State, and

(c)

a half of the energy used on voyages departing from or arriving to a port of call under the jurisdiction of a Member State, where the last or the next port of call is under the jurisdiction of a third country.

(c)

half of the energy used on voyages departing from or arriving at a port of call under the jurisdiction of a Member State, where the last or the next port of call is under the jurisdiction of a third country.

(h)

‘substitute sources of energy’ means renewable wind or solar energy generated on-board or electricity supplied from on-shore power supply;

(h)

‘substitute sources of energy’ means renewable energy generated on-board or electricity supplied from on-shore power supply;

(ha)

‘wind propulsion’ or ‘wind-assisted propulsion’ means a propulsion technique that contributes primarily or in an auxiliary manner to the propulsion of any type of vessel via the energy of the wind, which is harnessed when the ship is sailing;

(i)

‘port of call’ means a port of call as defined in Article 3, poin (b) of Regulation (EU) 2015/757 ;

(i)

‘port of call’ means the port where a ship stops to load or unload a substantial part of its cargo or to embark or disembark passengers ; and consequently, excludes stops for the sole purposes of refuelling, obtaining supplies, relieving the crew, going into dry-dock or making repairs to the ship or its equipment, stops in port because the ship is in need of assistance or in distress, ship-to-ship transfers carried out outside ports, stops for the sole purpose of taking shelter from adverse weather or rendered necessary by search and rescue activities, and stops of container ships in a neighbouring container transshipment port;

(m)

‘ship at berth’ means ship at berth as defined in Article 3, point (n) of Regulation (EU) 2015/757 ;

(m)

‘ship at berth’ means a ship which is securely moored at the quayside in a port falling under the jurisdiction of a Member State while it is loading, unloading, embarking or disembarking passengers or hotelling, including the time spent when not engaged in cargo or passenger operations ;

(n)

‘energy use on-board’ means the amount of energy, expressed in mega joules (MJ), used by a ship for propulsion and for the operation of any on-board equipment, at sea or at berth;

(n)

‘energy use on-board’ means the amount of energy, expressed in mega joules (MJ), used by a ship for propulsion and for the operation of any on-board equipment, at sea or at berth, excluding the additional energy used due to the technical characteristics of a ship in ice class IA or IA Super, or an equivalent ice class, and excluding the additional energy used by a ship in ice class IC, IB, IA or IA Super, or an equivalent ice class due to sailing in ice conditions;

(qa)

‘ice class’ means the notation assigned to the ship by the competent national authorities of the flag state or an organisation recognised by that state, showing that the ship has been designed for navigation in sea-ice conditions;

(qb)

‘sailing in ice conditions’ means the sailing by an ice class ship in a sea area within the ice edge;

(qc)

‘ice edge’ means the demarcation at any given time between the open sea and sea ice of any kind, whether fast or drifting;

(r)

‘on-shore power supply’ means the system to supply electricity to ships at berth, at low or high voltage, alternate or direct current, including ship side and shore side installations, when feeding directly the ship main distribution switchboard for powering hotel, service workloads or charging secondary batteries;

(r)

‘on-shore power supply’ means the system to supply electricity to ships at berth, at low or high voltage, alternate or direct current, including ship side and shore side fixed, floating and mobile installations, feeding the ship main distribution switchboard for powering hotel, service workloads or charging secondary batteries;

—

- 13 % from 1 January 2035;

—

- 20 % from 1 January 2035;

—

- 26 % from 1 January 2040;

—

- 38 % from 1 January 2040;

—

- 59 % from 1 January 2045;

—

- 64 % from 1 January 2045;

—

- 75 % from 1 January 2050.

—

- 80 % from 1 January 2050.

—

there are serious concerns about production capacity, availability or price of RFNBOs, or;

—

there is a substantial cost reduction and a geographically comprehensive availability of RFNBOs and a need to increase the level of sub-quota to meet Union climate targets.

(b)

that use zero-emission technologies, as specified in Annex III;

(b)

that use zero-emission technologies, as specified in Annex III provided that they continuously achieve emissions that are equivalent to the emissions reductions that would be achieved by using on-shore power supply ;

(d)

that are unable to connect to on-shore power supply due to unavailable connection points in a port;

(d)

that are unable to connect to on-shore power supply due to unavailable connection points in a port, including due to a (temporary) lack of grid capacity, including during (seasonal) peak power demands by vessels at berth;

(e)

that are unable to connect to on-shore power supply because the shore installation at the port is not compatible with the on-board on-shore power equipment;

(e)

that are unable to connect to on-shore power supply because the shore installation at the port is not compatible with the on-board on-shore power equipment provided that the installation for shore-connection on-board the ship is certified in accordance with the standards specified in Annex II of Regulation XXXX-XXX (Alternative Fuels Infrastructure Regulation) for seagoing ships’ shore connection systems ;

(e)

a description of the intended source(s) of energy to be used on-board while in navigation and at berth to comply with the requirements set out in Articles 4 and 5;

(e)

a description of the intended source(s) of energy to be used on-board while in navigation and at berth to comply with the requirements set out in Articles 4 and 5, as well as in Annexes I and III, respectively;

(k)

a description of the method to be used to determine surrogate data for closing data gaps;

(k)

a description of the method to be used to determine surrogate data for closing data gaps or for identifying and correcting data errors;

(a)

information on the ice class of the ship;

(b)

a description of the procedure for monitoring the distance travelled for the whole voyage; and

(c)

when sailing in ice conditions, the date and time when sailing in ice conditions, the fuel consumption and the energy provided by substitute sources of energy, or a zero emission technology as specified in Annex III when sailing in ice conditions.

(ea)

where methods to prevent data gaps and identify data errors have been found to be inadequate to ensure data solidity and transparency.

(d)

the use of on-shore power supply or the presence of exceptions certified in accordance with Article 5(5).

(d)

the use of on-shore power supply or the presence of exceptions listed in Article 5(3), certified in accordance with Article 5(5).

(d)

the relevant records of the ship are complete and consistent.

(d)

the relevant records of the ship are complete , transparent and consistent.

(a)

is knowledgeable in shipping;

(b)

is equipped at all times with significant technical and support staff commensurate with the amount of vessels he verifies;

(c)

is capable of assigning to every place of work, when and as needed, means and staff commensurate with the tasks to be carried out in accordance with the various tasks listed in Chapter V of the present regulation.

(c)

the amount of each type of fuel consumed at berth and at sea;

(c)

the amount of each type of fuel consumed at berth and at sea , including the amount of electricity taken at berth for navigational purposes ;

(d)

the well-to-wake emission factors for each type of fuel consumed at berth and at sea, broken down by well-to-tank, tank-to-wake and fugitive emissions, covering all relevant greenhouse gases;

(d)

the well-to-wake emission factors for each type of fuel , including electricity taken from an onshore power supply, consumed at berth and at sea, broken down by well-to-tank, tank-to-wake and fugitive emissions, covering all relevant greenhouse gases;

(e)

the amount of each type of substitute source of energy consumed at berth and at sea.

(e)

the amount of each type of substitute source of energy consumed at berth and at sea , including fuels, electricity, wind and solar energy .

(a)

the ice class of the ship;

(b)

the date and time when sailing in ice conditions;

(c)

the amount of each type of fuel consumed when sailing in ice conditions;

(d)

the amount of each type of substitute source of energy consumed when sailing in ice conditions;

(e)

the distance travelled when sailing in ice conditions;

(f)

the distance travelled during the voyage;

(g)

the amount of each type of fuel consumed at sea; and

(h)

the amount of each type of substitute source of energy consumed at sea.

(ca)

compile that information, provided pursuant to Article 14(3), and submit it to the Member State’s competent authority.

(d)

calculate the amount of the penalties referred to in Article 20(1) and (2).

(a)

in the case of a shipping company registered in a Member State, the Member State in which the shipping company is registered;

(b)

in the case of a shipping company that is not registered in a Member State, the Member State with the greatest estimated number of port calls from voyages performed by that shipping company in the last two monitoring years falling within the scope set out in Article 2;

(c)

in the case of a shipping company that is not registered in a Member State and that has not carried out any voyage falling within the scope set out in Article 2 in the preceding two monitoring years, the administering authority shall be the Member State from where the shipping company has started its first voyage falling within the scope set out in Article 2.

(aa)

the scope of this Regulation in terms of:

(ab)

the default values provided in Annex II, based on the most accurate available scientific knowledge and evidence;

(ac)

the list of pollutants covered by this Regulation, in particular the possibility to include black carbon (BC) emissions;

(b)

the ship types to which Article 5(1) applies;

(b)

an extension of the ship types to which Article 5(1) applies;

(ca)

the methodology specified in Annex I.

A.

Formula for calculating the ship’s compliance balance

a)

Compliance Balance with respect to greenhouse gas intensity of the ship, in respect to Article 4.2

b)

Compliance Balance with respect to RFNBO quota, in respect to Article 4a (3)

B.

Formula for calculating the penalty laid down in Article 20(1)

a)

Remedial Penalty with respect to compliance balance for greenhouse gas intensity of the ship, in respect to Article 4.2

b)

Remedial Penalty with respect to RFNBO quota, with respect to Article 4a(3)