The EU’s upcoming maritime shipping regulations for 2025—including FuelEU Maritime, ETS inclusion, and GHG intensity targets—will transform how fleets operate, fuel, and comply in a decarbonizing world.

The European Union is set to implement critical policy and regulatory updates in 2025, which are expected to have a significant impact on maritime shipping. These changes will have far-reaching implications for cargo owners, ranging from compliance with new regulations to managing associated costs passed down through the supply chain. Designed to drive decarbonization efforts and promote the adoption of alternative fuels, the measures mark a pivotal step toward a more sustainable maritime shipping sector. Stakeholders must understand the scope and potential financial implications of these regulations to adapt effectively.

EU ETS 2025 Update

In January 2024, the European Union extended its Emissions Trading System (EU ETS), the bloc’s cap-and-trade system, to include the maritime sector’s greenhouse gas emissions, specifically carbon dioxide, methane, and nitrous oxides. For 2024, this expansion applied to 40% of the marine sector’s emissions, specifically from cargo ships greater than 5,000 GT. Stakeholders will have to surrender the proper allowances in September 2025 to cover these emissions.  Starting in January 2025, 70% of the maritime sector’s emissions will be covered by the EU ETS. This expansion is likely to increase the carbon costs for shippers and spur the adoption of energy-efficient technologies and alternative fuels. Allowances for the 2025 emissions will need to be surrendered by September 2026.

FuelEU

Starting in 2025, the European Union’s FuelEU regulation will come into effect. The regulation complements the EU ETS and requires ship operators calling at European ports, regardless of their flag, to reduce the intensity of greenhouse gas emissions from the fuels used in their vessels. It is akin to a clean fuel standard for maritime ships in that it sets maximum limits for the yearly GHG intensity of energy used by ships over 5,000 gross tonnage, thereby encouraging the adoption of alternative fuels. The regulation covers carbon dioxide, methane, and nitrous oxide emissions on a well-to-wake basis. Similar to the EU ETS, if the ship’s route is within the EU, FuelEU covers 100% of the GHG emissions. If the route is between the EU and non-EU countries, 50% of the GHG emissions are covered by FuelEU.

Alternative Fuel Availability for Maritime Shipping

The most common alternative maritime fuel globally is B24 (i.e., 24% bio-components); however, the Rotterdam port in Europe frequently supplies B30, a fuel with 30% bio-components. Many stakeholders expect the majority of alternative maritime fuels to be composed of used cooking oil methyl ester (UCOME). Platts’ data from October indicated that the price of B30 UCOME was around $879 per metric ton, while VLSFO was around $630 per metric ton. Despite these price differences, advancements in fuel and technology are expected to reduce costs, promote the use of alternative fuel types, and unlock new efficiencies for the maritime sector.

Mediterranean ECA

From May 1, 2025, ships operating in the Mediterranean SO_x ECA will be required to comply with a more stringent sulfur content limit in their fuel oil. The new limit will be one-fifth of the legal limit outside the Mediterranean ECA (0.10% mass by mass, compared to 0.5% m/m outside the Mediterranean ECA). Complying with sulfur regulations will increase vessel operating costs, whether by installing scrubber technology or using more cost-effective low-sulfur fuel.

New EU Shipping Laws Are Here — Compliance Is No Longer Optional

FuelEU Maritime, carbon pricing via ETS, and lifecycle fuel mandates are redefining Europe’s shipping sector. Success in 2025 depends on deploying low-emission fuels, traceable infrastructure, and circular logistics.

Klean Industries Offers Proven Maritime Compliance Solutions:

✅ Pyrolysis-based fuels from end-of-life tires & plastics
✅ Fully traceable ESG systems via KleanLoop™
✅ Scalable bunkering infrastructure for clean marine fuels
✅ Strategic advisory to navigate EU shipping regulations

Get in Touch with Klean Industries to build your roadmap to compliance, sustainability, and a competitive advantage in EU-regulated waters » GO.