In January 2026, the European Union formally revised the FuelEU Maritime regulation to further tighten carbon‑intensity standards for marine fuels. The updated rules require a 30 % reduction in the lifecycle carbon intensity of ship‑borne fuels by 2030 against the 2021 baseline (up from the original target of 20 %), and a 60 % cut by 2040. These targets go far beyond those laid out in IMO’s draft net‑zero‑emissions framework, imposing stringent constraints on vessels calling at EU waters. The new rules apply to all ships entering or leaving EU ports, irrespective of their flag state. Non‑compliant vessels will face port‑stay restrictions and heavy‑weight fines.

The core requirements of the revised regulation are as follows. First, phased‑down fuel carbon intensity: the first‑phase emission‑reduction targets become legally enforceable starting in 2026, with verification carried out every two years. Second, extended scope of application: vessels below 5,000 gross tonnage, which were previously exempted, are now brought under regulation. Third, boosted uptake of low‑carbon fuels: shore‑side electricity usage for berthed vessels shall reach no less than 80 % by 2030, while ocean‑going ships must achieve a minimum 10 % share of zero‑emission fuels. Unlike the IMO framework, the EU regulation adopts a lifecycle carbon‑intensity accounting methodology that covers emissions across the full fuel supply chain, from feedstock production to on‑board combustion, thereby imposing stricter curbs on conventional heavy fuel oil.

Driven by the policy shift, European energy firms have accelerated their procurement of second‑hand green‑tonnage vessels. Between January and February 2026, European buyers accounted for 62 % of global second‑hand LPG dual‑fuel carrier transactions, pushing the transaction premium for this vessel type above 43 %. Industry experts warn that non‑compliant ships risk being locked out of European trade routes. Ship‑owners are advised to prioritise retrofitting projects for low‑carbon fuels such as LNG and methanol, or purchase pre‑owned eco‑vessels that meet the new standards, so as to avert compliance‑related risks.