“Sustainable fuels in the aviation and maritime transport industry” (article about sustainable energy & fuels)
(article drafted by Panagiota Maragkozoglou, Associate and Kosmas Karanikolas, Senior Associate for Lexology in March 21,2025)
The article addresses the EU’s efforts, about sustainable energy & fuels, to reduce greenhouse gas emissions in aviation and maritime transport starting in 2025 through the ReFuelEU Aviation Regulation and the FuelEU Maritime Regulation. The Maritime Regulation targets ships over 5,000 gross tonnage, aiming for an 80% reduction in greenhouse gas emissions by 2050. Shipping companies must submit monitoring plans by August 2024 and annual “FuelEU reports.” Non-compliance results in fines, and insurance covering such fines is illegal. The Aviation Regulation requires aviation fuel supplied at EU airports to contain at least 2% sustainable aviation fuel (SAF) by 2025, rising to 70% by 2050, with synthetic aviation fuels making up a part of this blend. Reporting requirements and fines for non-compliance are also established.
The UK SAF Mandate follows a similar path, targeting 2% SAF use by 2025 and 22% by 2040, with a revenue certainty mechanism through a “contract for difference” model. Hydrogen is considered crucial for decarbonization, particularly green hydrogen derived from renewable sources. Greece is highlighted as a potential leader in green hydrogen production. The article concludes by emphasizing the importance of sustainable fuels and renewable hydrogen in achieving decarbonization goals under the Paris Agreement.
Access the full article about sustainable energy & fuels here:
Sustainable fuels in the aviation and maritime transport industry – Lexology