From January 2024 emitting CO2 from ships will have a cost. Are you fully prepared for the EU ETS? Or, do you want to learn more about how the carbon cost can impact your shipping programme?
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From Jaunary 2024 emitting CO2 from ships will have a cost and all cargo ships sailing in, to or from Europe will be impacted.
An EU allowance, or an EUA, is a permit to emit 1 tonne of carbon dioxide or its equivalent (CO2e). The EUA price is fluctuating but has has kept stable at between 85-95 USD lately.
The new cost will eventually find its way to the freight rates. Below we use two commonly traded tanker routes, one intra EU voyage and one global EU voyage, to indicate what the carbon cost level will be like once the ETS is fully phased-in.
Traders, charterers and ship owners will have to understand the emissions impact of their decisions if they want make carbon and cost efficient everyday decisions.
The intra EU voyage is represented by an MR loading 37 000 tons of CPP in Mongstad and discharging in Rotterdam.
Total emissions estimates include full ballast and laden leg plus port stays.
EU ETS eligible emissions include 100% of emissions from ballast, laden and port stays. EUA price is set to 100 USD and emissions are calculated according to full ETS phase-in.
The extra EU voyage is represented by an MR vessel loading 37 000 tons of CPP in Rotterdam and discharging in New York.
Total emissions estimates include full ballast and laden leg plus port stays.
EU ETS eligible emissions include 50% of ballast and laden leg and 100% of port stays in Europe. EUA price is set to 100 USD and emissions are calculated according to full ETS phase-in.
The Siglar Carbon ETS analysis will allow you to understand the coming carbon cost exposure of your shipping programme.
