Environmental costs are reshaping bunker fuel composition

The combined impact of the EU ETS and FuelEU Maritime Regulation gives a substantial increase in the effective cost of fossil bunker fuels through 2040. When emissions costs are fully internalised, the total cost of both VLSFO and LNG could approximately double before 2040. Conversely, these regulatory measures are essential in closing the cost gap and enabling low- and zero-carbon fuels to become economically viable within the maritime sector.