Sustainability Certification for Marine Fuels

Introduction

The 2023 GHG Strategy of the IMO set ambitious targets – a 40% cut in carbon intensity by 2030 and net-zero emissions by 2050. The organization underlined that the achievement of these targets could be finalized only with the introduction of new fuels, zero or near-zero GHG emission fuel.

The strategy includes lifecycle GHG intensity for marine fuels. It considers emissions from the ‘cradle to the grave stage’, from the time of production to the time of burning, and encourages a holistic approach to sustainability in choosing fuels.

The approach of the EU is encapsulated in the RED II, which requires that renewable and low-carbon fuels possess certificates guaranteeing sustainability. This procedure involves a Proof of Sustainability (PoS) through which the fuel undergoes tracking by the supply chain to ensure observance of the conditions required to be environmentally compliant.

Both IMO and EU rules require a certificate that proves the sustainability of marine fuels. This includes:

• Lifecycle Assessment: Examining emissions at production, use, and end.
• Proof of Sustainability: Making sure that biofuels and other options follow certain environmental rules.
• Annual audit: The certification programs must be audited annually to ensure compliance with sustainability standards.

Type of Fuel Covered

The criteria for certified sustainable marine fuels under the ISCC (International Sustainability and Carbon Certification) system are designed to ensure compliance with environmental, social, and traceability standards.

• Biofuels: Fuels produced from bio-based feedstocks.
• Renewable Fuels of Non-Biological Origin (RFNBOs): Includes fuels derived from renewable energy sources, such as hydrogen produced via electrolysis.
• Recycled Carbon Fuels (RCFs): Fuels made from recycled materials.

Criteria for Certified Sustainable Fuels

All parts of the supply chain are certified for total traceability. Data is passed down the supply chain through sustainability reports.

For each step of the life cycle of GHG, the emissions are calculated across the supply chain to determine how carbon-intensive are marine fuels.

Below are the key components which are assessed for being a compliant sustainable fuel.

Greenhouse Gas (GHG) Emissions: Fuels shall have at least lifecycle GHG savings against fossil fuels. For example, RFNBOs shall reduce the level of GHG emission by at least 70 per cent against a defined comparator.

Sustainable Feedstock Production: Feedstocks shall be produced in a manner that avoids biodiverse and high carbon stock areas and is conducive to responsible land use practices.

Fair Labour Practices: Respect for International Labour Rights and Fair Conditions of Work are mandatory.

Community Relations: Companies should interact with local communities they impact through their operations responsibly.

Mass Balance System: ISCC requires a mass balance system to be documented and traceable at every step from feedstock production through to end use 24.

Proof of Sustainability (PoS): Companies should prove adherence to the set sustainability standards. This is vital for entry into markets demanding such documents.

Proof of Compliance (PoC): In addition to the PoS, a PoC may be issued, especially when the PoS has been submitted to regulatory bodies and cannot be reused. The PoC serves as a compliance document that references the original PoS, ensuring traceability and accountability within the supply chain.

Challenges

An increasing quantity and intricacy of regulatory frameworks, along with the associated certification frameworks. Often, there is no full consistency of differing regulatory regimes in regard to certification.

Entities in the value chain, including fuel producers who aspire to penetrate many markets, are faced with numerous certification standards that are mostly not comprehensively aligned. Certification schemes have limited flexibility in aligning their certification needs if core regulatory structures are different for different regions.

Documentary evidence can only be sought from obligated parties by the authorities regarding the adequacy of the fuel provided/utilized Usually, it comes in the form of what is known as the PoS and PoC in the case of fuels used in the Maritime sector, indicating all relevant sustainability and GHG information for a fuel batch.

To alleviate the potential for double counting, the PoS document is typically applicable only once and for one reason (e.g., by a fuel supplier towards an obligation under the EU RED). Because of the interconnectedness and/or redundancy of several regulatory requirements, for example, EU RED, EU ETS, and Fuel EU Maritime, different entities in the value chain would like to submit a claim for the same batch of fuel.

Sometimes, uncertainty may arise on the degree to which officials admit various claims about a fuel. Moreover, the structure remains unclear in place regarding cases where the PoS is unavailable.

Conclusion

Certification has to be aligned with the EU Renewable Energy Directive (RED II), ensuring that certified fuels comply with these legal requirements for sustainability in the EU market. It also entails compliance with specific GHG savings targets and social criteria exceeding minimum thresholds.

Indeed, the proof of compliance in sustainable marine fuel relies on substantial certification systems such as ISCC, which provide required paperwork in support of PoS and PoC. These frameworks not only help to adopt the compliant scenarios with regulatory requirements but also address sustainability and transparency in maritime fuel, which is integral to achieving global climate goals.

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• Role of Seafarers in Maritime Decarbonization
• Why and How to Decarbonize the Marine Industry?
• Introduction To Methanol As A Sustainable Fuel For Ships
• Simplifying the Energy Efficiency Existing Ship Index (EEXI)