FuelEU Maritime Regulation: monitoring plan deadline

FuelEU Maritime Regulation (Regulation (EU) 2023/1805) was adopted in July 2023 as part of the Commission’s Fit for 55 legislative package to reduce EU greenhouse gas emissions by at least 55% by 2030. The FuelEU Maritime Regulation focuses on the shipping industry and establishes emissions-cutting targets: starting with a 2% decrease by 2025 and reaching up to an 80% reduction by 2050.

The Regulation applies to all ships of above 5 000 gross tonnage that serve the purpose of transporting passengers or cargo for commercial purposes, regardless of their flag, in respect of energy used both during the stay within a port and on voyages.

The Regulation also introduces additional zero-emission requirements for ships at berth, mandating the use of on-shore power supply or alternative zero-emission technologies in ports.

Shipping companies that fall within the scope of the FuelEU Maritime Regulation are obliged to submit:

Deadline	Reporting obligation
31 August 2024	a monitoring plan to verifiers (special entities accredited by Cyprus Shipping Deputy Ministry) for each of their ships to monitor and report the amount, type and emission factor of energy used on-board by ships and other relevant information
1 January 2025	annual reports (based on the verified monitoring plan) for verification pertaining to information monitored and recorded for each ship arriving at or departing from a port of call and for each voyage

The monitoring plan shall contain, in particular, details of the company and the ship, a description of the energy conversion systems installed on board and the related power capacity, the value of the established total electrical power demand of the ship at berth, a description of the intended sources of energy to be used on board while in navigation and at berth, etc.

Should you require further clarifications concerning the above, please contact our trusted advisors in the Indirect Tax Department at KPMG Cyprus.

KPMG’s Indirect Tax team provides advice and assistance at the Cyprus and international level. We structure our effort to dovetail with your business issues and strategy. Our focus is on supplying value adding and pragmatic advice rather than just a list of recommendations.

Our tax professionals are able to review your company’s current tax position and provide relevant advice and planning on a range of green initiatives, indirect taxes, including VAT, customs duties and excise taxes (such as tax audits, reorganizations and acquisitions, etc.). Furthermore, we can help your company with its administrative obligations and contacts with administrative bodies.