Cyprus Shipping Chamber Voices Concerns Over Draft Law on Sustainable Fuels

The Cyprus Shipping Chamber (CSC) has expressed its reservations about a proposed piece of legislation that aims to toughen the rules on sustainable fuels in the country’s transport sector.

The draft bill, formally titled the Sustainability and Fuel Emissions Amendment Law of 2025, seeks to amend the fuel sustainability laws already enacted in 2022 and 2024. Its purpose is to bring Cyprus law into partial alignment with key European Union measures, notably Directive (EU) 2023/2413 and Regulation (EU) 2023/2405, which address renewable energy use in transport and the adoption of sustainable aviation fuels.

The legislation introduces binding targets for renewable fuels and emissions reductions. By 2030, EU member states must either ensure that renewable energy accounts for no less than 29 per cent of final energy consumption in transport, or demonstrate that the greenhouse gas emissions intensity in the sector has been reduced by at least 14.5 per cent compared with the reference value of 94 grams CO2 per megajoule.

Under the draft law, advanced biofuels, biogas, and non-biological renewable fuels must constitute at least 1 per cent of transport energy by 2025, increasing to 5.5 per cent by 2030. Specifically for shipping, the indicative target for non-biological renewable fuels is 1.2 per cent of total energy by the end of the decade.

In addition to these obligations, the legislation sets stricter sustainability and emissions benchmarks, requires tighter verification of compliance, and establishes an EU-wide database for recording fuel sustainability data. It further lays down calculation methodologies for transport targets, together with penalties for entities that fail to comply.

For the aviation sector, the bill imposes duties on fuel suppliers to incorporate sustainable and synthetic aviation fuels in their supply, submit annual reports, and face fines if they miss targets or provide false data. Measures are also included for detecting infringements related to the quality of ship fuels.

In contributing to the public consultation process, the Cyprus Shipping Chamber welcomed the opportunity to put forward proposals on the bill. The chamber acknowledged that the law introduces stronger checks and verification procedures for biofuels, biogas, and renewable fuels in cooperation with the Deputy Ministry of Shipping, but stressed that these procedures must be manageable. It stated that verification is necessary “but must remain practical and avoid excessive administrative or financial burdens on local suppliers.” It added that compliance procedures, documentation requirements, and timelines all need to be clarified.

The CSC called for digitalisation and harmonisation with existing EU databases in order to prevent duplicate reporting, citing systems such as the International Sustainability and Carbon Certification (ISCC). It went on to recommend that shipping fuel suppliers in Cyprus should be registered entities holding valid ISCC certification or another certification recognised by the EU.

The law envisages laboratory checks on ship fuel samples, administrative fines reaching up to €200,000, and the potential detention of vessels if sulphur content is found to exceed the prescribed limits. The chamber underlined the seriousness of these measures, noting that “the penalties are significant and the risk of vessel detention is a serious commercial issue.” It insisted that sampling, testing, and appeal procedures must be “transparent, fair, and allow supplier participation,” with clear monitoring protocols, retesting processes, and dispute resolution mechanisms to shield suppliers from unjustified penalties.

The CSC pointed out that representative samples are normally those recorded on Bunker Delivery Notes, although MARPOL samples and tank samples may also be considered valid. It cautioned that an out-of-specification result could be the consequence of “human error, residue in pipes, or poor sampling practices,” and that additional analysis may therefore be required to establish the true sulphur content.

Under the bill, suppliers would also be required to submit comprehensive annual data on energy consumption, renewable energy content, and compliance with sustainability and emissions criteria, with all information uploaded to the EU database. The chamber cautioned that the reporting demands are extensive and could necessitate “significant investment in systems and training.”

It further highlighted that shipping already operates under rigorous verification and reporting obligations as set out in EU Regulation 2015/757, which governs monitoring, reporting, and verification of CO2 emissions from maritime transport. It warned that layering additional parallel reporting for shipping fuel suppliers risked “duplicate oversight and inconsistencies, reducing regulatory effectiveness.”

The CSC drew attention to the practical challenges faced by international shipping, explaining that fuel supplied at an EU port may be consumed outside EU waters, raising doubts over “the practical value and regulatory logic of requiring suppliers to report fuel consumption data to the member state where the refuelling occurred.” It cautioned that the imposition of extra reporting duties would impose “a heavy operational and financial burden, particularly for smaller suppliers.”

In its recommendations, the chamber urged regulators to focus on simplifying and harmonising reporting duties, to make use of existing instruments such as Regulation 2015/757, and to ensure that any new rules remain proportionate, well-targeted, and consistent with the operational realities of international shipping.

The CSC also put forward further considerations, including the need to clearly separate supplier and shipowner responsibilities, the exemption of transit fuels, the introduction of a transition period free of sanctions, and the provision of incentives to encourage investment in green fuels.

By fLEXI tEAM