Fit for 55
The information provided on this page is based on the European Commission Proposal dated July 2021. Key elements are subject to change before the definitive measures are adopted.
The EU Green Deal is the EU’s pledge to achieve a green economy. It sets two critical targets for GHG reduction:
The Fit for 55 package is the proposed framework for transforming the Green Deal into reality. These measures are the most ambitious legislation the EU has ever set forth to combat climate change and create a sustainable economy. It will include both revisions to existing regulations and new measures, goals and tools.
Fit for 55’s legislative proposals span all sectors of the European economy, including shipping and the industry’s upstream suppliers. Should Fit for 55 be adopted, companies that operate in EU waters will need to be agile and responsive. Action in Europe may also spur the IMO to accelerate its own legislation and adopt more aggressive targets. Familiarity with Fit for 55 and its provisions, therefore, benefits the whole maritime industry.
Fit for 55 is still subject to change and discussion but will likely result in a combination of several measures: carbon pricing, rules and targets.
Carbon pricing discourages using carbon-based fuels while promoting alternative energies. It does this by translating the external costs of GHG emissions into monetary values.
New rules will ensure the production and uptake of alternative fuels and fast-track development of new technologies by clarifying deadlines for transitioning fuel sources.
Targets establish common principles between member states, reducing barriers, stimulating investments and driving cost reductions in renewable energy technologies.
As mentioned above, these measures apply to all sectors of the economy, but proposals affecting the maritime industry are detailed below.