Retrofitting of Sea and Coastal Freight and Passenger Water Transport
Retrofitting existing sea and coastal vessels with cleaner propulsion, energy efficiency measures or alternative fuel systems to substantially reduce emissions.
Substantial Contribution to Climate Change Mitigation
The activity covers the retrofitting of existing sea and coastal vessels, both freight and passenger, to achieve zero direct (tailpipe) CO2 emissions. Eligible measures include engine replacement with battery-electric, hydrogen fuel cell or ammonia propulsion, installation of wind-assisted propulsion devices, and conversion to zero-emission fuel systems.
Until 31 December 2025, retrofits may alternatively qualify where they achieve a verified reduction of at least 10% in CO2 emissions per unit of transport work (gCO2/tkm for freight, gCO2/pkm for passenger) compared with pre-retrofit performance. The reduction must be confirmed through measurements under standardised operational conditions, referencing the vessel's historical Energy Efficiency Operational Indicator (EEOI) or equivalent metric.
Retrofitting the existing maritime fleet is essential given that vessels have operational lifetimes of 25 to 35 years. Waiting for fleet replacement through natural turnover would delay decarbonisation beyond climate-critical timelines. This criterion incentivises mid-life interventions that capture emission reductions from vessels that will continue operating for decades.
Substantial Contribution to Climate Change Adaptation
The retrofit must incorporate climate adaptation measures per Appendix A. Upgraded systems must be resilient to projected physical climate risks over the remaining vessel lifetime, including higher sea temperatures affecting cooling, increased storm loads on modified superstructures, and sea level changes affecting port compatibility.
DNSH: Climate Change Adaptation
A climate risk assessment for the retrofitted vessel must be completed, considering the remaining operational lifetime. Key hazards include increased wave loading on modified hull forms, higher ambient temperatures affecting new propulsion system performance, and accelerated biofouling rates in warming seas increasing drag and energy consumption.
DNSH: Water and Marine Resources
Retrofit works must comply with environmental shipyard regulations, preventing contamination of harbour waters from paint removal, sandblasting residues and chemical agents. The completed vessel must meet MARPOL Annexes I, II, IV, V and VI standards. Any new ballast water systems installed must comply with the IMO Ballast Water Management Convention D-2 standard.
DNSH: Circular Economy
Removed components, including engines, boilers and fuel tanks, must be directed to recycling or remanufacturing. At least 70% by weight of non-hazardous retrofit waste must be recovered. New battery or fuel cell installations must comply with Regulation (EU) 2023/1542. An updated Inventory of Hazardous Materials must be prepared post-retrofit in accordance with Regulation (EU) No 1257/2013.
DNSH: Pollution Prevention and Control
Post-retrofit emission performance must meet or exceed MARPOL Annex VI limits, including ECA sulphur caps and Tier III NOx requirements. Any remaining combustion engines must use fuels compliant with the FuelEU Maritime Regulation. Noise and vibration from the new propulsion configuration must not exceed pre-retrofit levels. Fugitive emissions from alternative fuel storage, particularly ammonia and hydrogen, must be controlled with appropriate safety and ventilation systems.