The European Parliament’s negotiators and the Council on Monday reached a deal on the requirements for Alternative Fuel Infrastructure, the so-called “AFIR”.

In line with the agreement, 2030 will be the deadline for TEN-T ports to have shore side electricity infrastructure in place to serve the demand from container and passenger ships. The new legislation also introduces a demand-based requirement for the provision of liquefied methane (often referred to as LNG) by 2025, providing legal and investment certainty for ports.

The greening of shipping is a priority for ports in Europe. To realise the greening ambitions for shipping, both during navigation and at berth, both ships and shoreside actors must get ready. Along with facilitating the provision of bunkering infrastructure for future fuels, the deployment of onshore power supply infrastructure is an important pillar for reducing emissions at berth in ports.

Whereas ESPO is convinced that the use and deployment of alternative fuels and shore side electricity (SSE, also known as OPS) will help make the green transition a reality, shore side electricity should not be seen as an end in itself.

ESPO is very much in favour of the flexibility provided for ports in deploying shore side electricity in key locations in the port, prioritising the berths and terminals where emissions can be reduced the most. Europe’s ports therefore hope that the agreed-upon recital making such prioritisation possible will be well considered in the implementation.

In addition, ESPO welcomes that the new Regulation is not interfering with the governance models of the different European ports when it comes to defining the responsibilities of the different stakeholders.

Moreover, ESPO believes that the huge investments that must be made in ports to meet the new AFIR requirements can only be realised if they come with significant public funding instruments which are fit for purpose. Installing and providing OPS infrastructure remains a complex and costly exercise, with a limited and slow return on investment for the managing body. Since the price tag will be an important element in the decision of the shipping lines to use OPS, ESPO also strongly calls for the introduction of an EU-wide permanent tax exemption for shore side electricity in Article 15 of the proposal for a reviewed Energy Taxation Directive.

Finally, the onshore power investments in ports will only deliver and make sense if the infrastructure is well used. ESPO therefore welcomes that the agreement on FuelEU Maritime, reached last week, introduces a requirement for ships to use shore side electricity at berth in TEN-T ports as well as in other ports which installed this infrastructure starting in 2030. These requirements are a precondition for effective emission reductions during navigation and at berth, and must be robustly implemented and enforced as soon as possible. Since many ports in Europe will have shore side electricity available before 2030, ESPO very much hopes for the engagement of shipping lines to use shore side electricity when available before 2030.

“We welcome this agreement on AFIR, above all since for the first time the AFIR requirements are accompanied by a legislative framework that regulates the use of the infrastructure that has to be deployed in ports. It is now important for ports to sit together with all relevant stakeholders including the shipping lines to make quick progress ahead of 2030. It is essential for both EU and national authorities to foresee the adequate funding schemes and for ports to submit their projects”, says ESPO Secretary General Isabelle Ryckbost.

ESPO will continue to work closely with EU policymakers in the implementation and enforcement of AFIR and FuelEU Maritime to make the greening of shipping a reality.

The European Sea Ports Organisation (ESPO) is pleased to see that a preliminary agreement has been reached between co-legislators on the proposal for FuelEU Maritime.

The agreement provides the shipping sector with a framework to accelerate their green transition through reduced emissions during navigation and at berth.

The ambitious requirements for ships to reduce emissions starting in 2025 will help drive the uptake of alternative fuels in shipping, as well as help ensure the use of shore side electricity (SSE).

ESPO welcomes that the agreement on FuelEU Maritime introduces a requirement for ships to use shore side electricity at berth in TEN-T ports as well as in other ports which installed this infrastructure starting in 2030. For ports, it is important that this obligation to use is implemented and strictly enforced.

The obligation to use comes however with quite some exceptions that risks further delaying and limiting the use of the shore side electricity installations in ports. For ports, in line with the upcoming new Alternative Fuels Infrastructure Regulation (AFIR), 2030 will be the deadline for having shore side electricity infrastructure in place.

It is to be expected that many ports will already have these installations operational years before that, without any guarantee of use. Ports therefore strongly hope for the engagement of shipping lines to use shore side electricity when available before 2030.

“We are pleased that for the first time there is an agreement on the greening ambitions for shipping, both during navigation and at berth. We would like to congratulate the rapporteur and all negotiators on this agreement. The requirements for ships when to use of electricity at berth, will hopefully break the chicken and egg discussion. We hope however that the flexibility given to shipping lines to decide their own greening path, will also be mirrored in the upcoming agreement on AFIR. There is no time and no money to lose, for shipping lines nor for ports. Reducing emissions, fast and efficient, should be the main ambition. We hope the AFIR is also giving some flexibility to ports to prioritise investments in onshore power in ports where it makes the most sense”, says ESPO’s Secretary General Isabelle Ryckbost.

Europe’s ports furthermore favour the provisions in the agreement on compatibility between the shore side electricity on board ships with the installations in the port.

ESPO believes that coordination will be essential to boost the use of shore side electricity and to deliver real emission reductions. ESPO has consistently and successfully called for the introduction of a consultation mechanism for port stakeholders in FuelEU Maritime. Accordingly, Europe’s ports welcome that the preliminary agreement includes a provision requiring ships to inform the competent Member State of the port of call about their intention to use shore side electricity, and their power needs at berth.

ESPO also sees a recognition of the risk of carbon and business leakage in the agreement, but remains critical about the effectiveness of the clause. ESPO finally asks that the penalty revenues resulting from failure to connect to shore side electricity must be used to finance the necessary investments in shore-side electricity.

ESPO will continue to work closely with EU policymakers and shipping lines in the implementation of FuelEU Maritime, helping to make the greening of shipping a reality.

The European Sea Ports Organisation (ESPO) and the Federation of European Private Port Companies and Terminals (FEPORT) have jointly agreed that the proposals for an Alternative Fuels Infrastructure Regulation (AFIR) and the FuelEU Maritime Regulation should enable the deployment of OPS where it makes the most sense.

The greening of shipping is a priority for European port stakeholders. This entails addressing emissions from shipping both during navigation and at berth. Onshore power supply (OPS), also known as shore-side electricity, is one of the technologies available to help reduce greenhouse gas emissions at berth.

Both organizations underline the need for an ambitious deployment of OPS as a means to reduce the harmful emissions of ships of nitrogen oxides, sulphur oxides and particulate matter. In this way, port stakeholders can contribute to the much-needed greening of shipping.

Article 9 of the Commission AFIR proposal could result in the entire port needing to have OPS if it receives more than a certain number of port calls by a container or passenger vessel. This would entail significant additional public investment for deploying OPS compared to a more focused approach. These investments are unlikely to be cost-efficient in relation to the emission reductions that they can deliver.

ESPO and FEPORT would instead propose an approach which focuses on OPS deployment per location (such as berths or terminals) in the port, rather than per port. This would ensure that OPS, also known as shore-side electricity, is deployed where it makes the most environmental and economic sense, whilst maintaining the established roles and responsibilities of the various port stakeholders[1].

To avoid a waste of limited time and public resources, the legal framework on the European level should ensure that OPS is deployed at locations in the port where each installation will deliver maximal emissions reductions per Euro invested.

To optimise the use of OPS as a solution to emissions at berth, ESPO and FEPORT therefore call for the following:

1. A requirement for ships to use OPS when it is available in ports in FuelEU Maritime
2. Prioritising OPS deployment in port locations where it reduces emissions the most in AFIR

This approach does not assign new responsibilities to stakeholders in the port, and would respect the diverse governance models of European ports.

By calculating the number of port calls based on the relevant locations in the port,  it becomes possible for Member States and ports to prioritise investments in OPS where it makes the most sense in terms of environmental benefit (GHG reductions). Accordingly, locations in the port that are normally not called at, or that are not intended to be called at by the ship segments required to use OPS at berth, such as underused terminals, can be excluded from the requirement.

ESPO and FEPORT welcome that such an approach has been submitted by different members from different political groups and hopes that this approach will be well reflected in the compromise position that is being established by the rapporteur and shadow rapporteurs in the Transport Committee.

ESPO and FEPORT look forward to supporting policymakers in introducing a common-sense approach to OPS.

The European Sea Ports Organisation (ESPO) represents the port authorities, port associations and port administrations of the seaports of 22 Member States of the European Union and Norway at political level. ESPO has also observer members in Albania, Iceland, Israel, Montenegro, Ukraine and the United Kingdom. ESPO is the principal interface between the European seaport authorities and the European institutions. In addition to representing the interests of European ports, ESPO is a knowledge network which brings together professionals from the port sector and national port organisations. ESPO was created in 1993.

FEPORT represents the interests of 1225 private port companies and terminals performing cargo handling and logistics related activities in European seaports, which employ over 390.000 workers. The organisation was founded in 1993 to promote the interests of its members, and to maintain constant dialogue with all EU institutional and non-institutional stakeholders. FEPORT is based in Brussels, Belgium.

[1] As defined in Regulation (EU) 2017/352.

The European Sea Ports Organisation (ESPO) urges the European Parliament and Council to fully align the maritime pillar of the proposal for an Alternative Fuel Infrastructure Regulation (AFIR) with the FuelEU Maritime proposal.

While the discussions on the AFIR proposal are progressing fast in the Intermodal Working Party of the Council with compromise proposals already being in the making, the Fuel EU maritime proposal is only in a very preliminary stage of discussions in the Shipping Working Party.

For Europe’s ports it is essential that these proposals are discussed together and are fully aligned. If not, the whole aim of this exercise, namely a coordinated approach to match demand and supply for alternative fuels and technologies for shipping, is undermined.

“We understand the sense of urgency for the Fit for 55-package, but this must not endanger the careful matching of requirements on ports to deploy onshore power supply with the requirements on the use of these installations as foreseen in the FuelEU Maritime proposal. It is not possible to deploy the required infrastructure without any guarantees that it will be used by ships at berth. These two proposals must mirror each other to truly solve the chicken and egg discussions. An agreement on AFIR cannot be made without considering what will be discussed and agreed in Fuel EU,” says ESPO’s Secretary General Isabelle Ryckbost.

In particular, ESPO asks for a full alignment of Article 9 of the AFIR proposal with Articles 4 and 5, as well as Annex III of the FuelEU Maritime proposal.

The same degree of coordination between the two files must take place in the European Parliament, where the rapporteurs on the different files have just been appointed.

“We understand that different proposals of the Fit for 55-package will be discussed under the Joint Committee procedure. We welcome such a coordinated approach between different EP committees, but believe that coordination between the different specific proposals, in particular the AFIR and FuelEU, is equally important. We do hope that the different rapporteurs and shadows on these proposals are working together to reach a coherent package which delivers the emissions reductions needed,” adds Isabelle Ryckbost.

On 14 July the Commission issued a proposal for an Alternative Fuel Infrastructure Regulation (reviewing the current Directive of 2014) together with a new proposal regulating the use of alternative clean fuels and onshore power supply by shipping, the so-called Fuel EU maritime proposal as part of the Fit for 55-package. By introducing specific rules to mandate the use of OPS or other equivalent technologies, the Commission recognised the importance of a coordinated approach to match supply and demand by introducing a tool that establishes increased levels of demand of renewable and low-carbon maritime fuels and technologies.

ESPO looks forward to discussing the Fit for 55-proposals with the Commission, European Parliament and Council, and to working together with the relevant EU policy makers to deliver an ambitious and coherent Fit for 55-package that is fit for purpose.