The EU is considering delaying shipping fuel taxes for 10 years under a draft proposal that aims to stall energy tax reforms, news agency Reuters has reported.
While the fuel taxes set to be implemented only affected vessels above 5,000 GT, it was widely expected that vessels above 400 GT would be next in line, so this recent announcement is likely to mean a further delay in penalties for them.
The draft proposal exempts vessels from fuel taxes until 2035, as opposed to the original proposal, which would have seen them phased in from 2023 to be implemented in full by 2033.
Under the EU Directive 2003/87/EC (ETS Directive), a review of whether to include smaller vessels was mandated: “By no later than 31 December 2026, the Commission shall examine ‘the feasibility and economic, environmental and social impacts of the inclusion in [the ETS Directive] of emissions from ships, including offshore ships, below 5,000 GT but not below 400 GT,” the EC said.
These vessels are already required to monitor their CO2 emissions if they fall under the EU MRV scope (cargo or offshore ships), but it is purely monitoring and reporting and is not independently verified yet.
However the EU can use this reporting to prepare for future ETS (Emissions Trading Scheme) or FuelEU obligations once an ETS review has been carried out in 2026 and a FuelEU assessment due in 2027.
The EU had not responded to Maritime Journal’s request for comment at the time of writing.
