WHAT DO CHARTERERS NEED TO KNOW?

Shipping in the

EU ETS

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 will impact your chartering activities?
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 The European Union Emissions Trading System

Key takeaways

Shipping in the EU ETS

From Jaunary 2024 emitting CO2 from ships will have a cost and all cargo ships sailing in, to or from Europe will be impacted.

90 USD per tonNE CO2 emitted

An EU allowance, or an EUA, is a permit to emit 1 tonne of carbon dioxide or its equivalent (CO2e). The EUA price fluctuates but has kept stable at between 85-95 USD lately.

Impact on freight rates

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 extra EU voyage, to indicate what the carbon cost level will be like once the ETS is fully phased-in.

Understand your exposure

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.

CARBON EMISSIONS AND COST

EXAMPLE ROUTES

Intra EU voyage

The intra EU voyage below 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.

Extra EU voyage

The extra EU voyage below is represented by an MR vessel loading 37 000 tons of CPP in Rotterdam and discharging in New York.
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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.

Voyage route
Voyage route

Siglar Carbon

ETS Exposure Analysis

The Siglar Carbon ETS analysis will allow you to understand the coming carbon cost exposure of your chartering activities.

OUR EXPERT REPORT WILL

1

Quantify total carbon emissions related to your chartering activities during a chosen period

2

Estimate carbon
cost exposure during the period

3

Benchmark against industry averages and selected competitors

4

Advice on how to reduce emissions
and cost

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