28 April 2026

On 31 December 2025, the first reporting period under the FuelEU Maritime Regulation (“FuelEU”) came to an end. Each FuelEU reporting cycle corresponds to one full calendar year.

By 31 January 2026, shipping companies were required to submit a separate FuelEU Report for each vessel for the 2025 reporting year to their appointed verifiers. These reports contained all monitored data from 2025, including, among other things, the vessel’s annual average greenhouse gas (GHG) intensity of onboard energy consumption and the ship’s compliance balance, indicating either a surplus or a shortfall.

By 31 March 2026, the accredited verifier had to upload the verified FuelEU Report for every vessel into the FuelEU Database.

During April 2026, companies must now determine which FuelEU flexibility mechanism to apply to each ship. No later than 30 April 2026, the selected option—banking, borrowing, or pooling—must be registered in the FuelEU Database. Where pooling is chosen, the verifier appointed for the FuelEU Pool must also record the pool’s composition in the database.

Positive and Negative Compliance Balances

A vessel generates a positive compliance balance when it outperforms the applicable annual GHG intensity benchmark. In such cases, the ship is deemed compliant for the reporting year. In practical terms, this occurs when the vessel’s actual GHG intensity is lower than the FuelEU annual target.

The numerical difference between the achieved lower GHG intensity and the regulatory benchmark constitutes the compliance surplus.

On the other hand, a negative compliance balance arises where the vessel’s actual GHG intensity exceeds the applicable annual FuelEU benchmark. The gap between the benchmark and the higher achieved GHG intensity represents the ship’s compliance deficit.

Compliance is assessed over the entire reporting year. Depending on annual performance, a vessel will end the year with either a surplus or a deficit, which in turn determines the flexibility mechanisms available to the company.

The FuelEU Database

Commission Implementing Regulation (EU) 2026/394, which establishes detailed rules for the operation, access rights, and technical specifications of the FuelEU Database under Regulation (EU) 2023/1805, entered into force on 23 February 2026.

The FuelEU Database is largely built upon the existing THETIS‑MRV platform, which has for years been used by ships calling at ports in the European Economic Area (EEA) for reporting emissions data. The same platform also supports reporting obligations under the EU Emissions Trading System (EU ETS).

Flexibility Mechanisms Under FuelEU

1. Banking

Where a vessel ends the 2025 reporting year with a positive compliance balance, the company may carry forward (bank) the compliance surplus to the next reporting period.

If this option is selected, the banking decision must be recorded in the FuelEU Database and approved by the verifier. Banking is only permitted before the FuelEU Document of Compliance is issued. Accordingly, any banking entry must be completed before 30 June 2026.

2. Borrowing

If a ship concludes 2025 with a compliance deficit, but the company reasonably expects a surplus in 2026, it may borrow an advance compliance amount from the following year to offset the 2025 deficit.

The borrowed surplus is credited to the 2025 balance. In 2026, the same amount—multiplied by a factor of 1.1—is deducted from the vessel’s compliance balance.

Borrowing is not allowed in the following circumstances:

1. a) The borrowed amount exceeds 2% of the limit specified in Article 4(2) of FuelEU, multiplied by the vessel’s energy consumption (Annex I). Borrowing is therefore limited to a maximum of 2%.
2. b) Two‑year restriction: if the maximum 2% is borrowed for 2026 to compensate a 2025 deficit, no borrowing is allowed for that vessel into 2027.

Where borrowing is chosen, the advance compliance surplus must be entered into the FuelEU Database by 30 April 2026, subject to verifier approval.

If a ship subsequently does not make any commercial EU port calls during the following year, the company must pay the FuelEU penalty originally avoided, increased by 10%. Companies should therefore ensure that the vessel is expected to trade to EU ports before selecting borrowing.

3. Pooling

A vessel with a negative compliance balance may instead be placed into a FuelEU Pool.

A pool operates by redistributing compliance surpluses from over‑compliant vessels to ships with deficits. After allocation:

• no surplus vessel may end up with a deficit,
• the total pool balance must remain positive.

Pooling may involve GHG compliance balances and, where applicable, RFNBO sub‑target balances under Article 5(3).

A vessel’s compliance balance may only be included in one pool per reporting year. However, separate pools may exist for the main GHG target and the RFNBO sub‑target.

For the 2025 reporting year, vessels with deficits may be entered into a pool until 30 April 2026.

Where pooling is selected, the company must register the pool allocation and chosen pool verifier in the FuelEU Database. If multiple companies are involved, each must validate the pool information.

From future reporting years onward, vessels must hold a valid FuelEU Document of Compliance to participate in a pool; this requirement does not apply for 2025.

Any surplus generated through pooling may subsequently be banked. Borrowing is not permitted for vessels participating in a pool.

By 30 April 2026, the pool verifier must confirm the final pool structure and allocation. Any remaining uncovered compliance deficit is subject to a FuelEU penalty.

4. FuelEU Penalties

By 1 May 2026, the verifier must record the verified compliance balances in the FuelEU Database.

Where a compliance deficit remains by 1 June 2026, the administering State shall require payment of the FuelEU penalty by 30 June 2026, calculated in accordance with Annex IV, Part B.

For consecutive non‑compliance, penalties are progressively increased. Penalty multipliers reset when a vessel changes company.

Special penalty rules apply where borrowing was used but no EU port calls occurred in the subsequent year.

All penalties and compliance balances must be recorded promptly in the FuelEU Database  Ultimate responsibility for payment remains with the company.

FuelEU Document of Compliance

By 30 June 2026, the verifier must issue a FuelEU Document of Compliance where no deficits or unpaid penalties remain. If penalties have been paid, the administering authority may issue the document instead.

The document is valid for 18 months after the end of the reporting period or until replaced.

Obligation to Carry the Document

From 30 June 2026, all ships calling at EU ports or operating voyages covered by FuelEU must carry a valid FuelEU Document of Compliance. The document constitutes formal proof of compliance.

Enforcement

Port State Control inspections must include verification of the FuelEU Document of Compliance.

Repeated non‑compliance may lead to expulsion orders, notifications through the FuelEU Database, refusal of port entry across Member States, or flag‑state detention. Vessels in distress remain exempt.