Shipowners bunkering in the Netherlands have just three days to register the required data to make a so-called "parallel claim" for use of advanced biodiesel blends last year under the EU's emissions trading system (ETS).
But with the deadline fast approaching, it is still not certain if parallel claims can be applied across the board for 2024 emissions, according to the Dutch Emissions Authority (NEa). The legal basis for these claims within the scope of the ETS scope will be provided by an amendment to the Emissions Trading Regulation, NEa said. Until such an amendment has been ratified, no "rights can be derived" for parallel claims, it added.
Market participants told Argus that the 28 February data entry deadline will apply primarily to Dutch-flagged vessels and international vessels that disembark in the Netherlands most frequently during a reporting year.
Parallel claims refer to advanced fatty acid methyl ester (Fame) marine biodiesel blends bunkered in the Netherlands, which are eligible for both Dutch renewable HBE-G tickets and a zero CO2 emission factor under the EU ETS.
HBE-G tickets are a class of Dutch renewable fuels units used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty/energy tax on fuels. These tickets are typically obtained by the bunker fuel supplier, and the process would usually include submitting Proof of Sustainability (PoS) documentation.
The shipowner buying advanced Fame marine biodiesel blends would typically not receive the PoS at the point of delivery. But PoS documentation is generally required for EU ETS purposes, including obtaining a zero CO2 emission factor for eligible biofuels.
The Netherlands' Ministry of Infrastructure and Water Management has decided to allow parallel claims for maritime fuels, and the NEa said it communicated instructions on this to relevant bookers last month.
But the uncertainty surrounding the application of parallel claims for 2024 could weigh on marine biodiesel demand in the Netherlands, where regional price dynamics have led to a shift in demand away from northwest Europe and towards Singapore. Prolonged uncertainty could further support demand in Singapore, where parallel claims would usually not be necessary under EU ETS and FuelEU Maritime regulations.
The International Sustainability and Carbon Certification (ISCC) recently issued a framework for a Proof of Compliance (PoC) document, intended to address challenges arising from the unavailability of PoS documentation for downstream operators, such as airlines and shipowners. NEa said it expects a temporary solution such as the PoC to be available for compliance year 2025. In the longer run, the plan is for the Union database to facilitate claims, it said.
