SIGLAR insights

The latest on carbon and cost efficient shipping

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Two versions of the EU ETS - see the different impact on freight costs

There are currently two suggested versions of how the maritime sector should be included in the EU ETS. We compare the two versions to demonstrate how each of them would the impact freight costs.

New EU ETS amendments – what do they mean to the charterer?

Newly suggested EU ETS amendments have the potential to strongly impact charterers and freight rates. The commercial operator’s requirement to pay the final carbon cost is enforced and the inclusion of emissions from the shipping industry is accelerated and expanded.

European carbon price could increase freight rates by 10-30 %

The EU ETS allowances have been traded above USD 100 every day since the start of February. At this level the carbon price could increase freight rates by 10-30%. We use four example voyages from the tanker segment to show how this carbon price could impact freight rates on intra EU voyages and on global EU voyages.

Emission Schemes

UK Emissions Trading System

The UK Emissions Trading Scheme (UK ETS) is the United Kingdom’s carbon pricing mechanism. It operates as a cap-and-trade system that places a cost on greenhouse gas emissions by requiring operators to surrender tradable emission allowances corresponding to their verified emissions.

IMO Net Zero Framework

The International Maritime Organization (IMO) is developing a global regulatory framework intended to reduce greenhouse gas emissions from international shipping in line with the 2023 IMO GHG Strategy, which aims to achieve net-zero emissions from international shipping by or around 2050.

Djibouti Sovereign Carbon Initiative

The Governments of Djibouti and Gabon have introduced sovereign carbon registry frameworks that apply a carbon cost to qualifying ship movements to and from their ports.

Customer Q & A

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"We want to help sustainable shipowners achieve higher fleet utilization and improved return on their green investments. "

Geir Olafsen, CDO Siglar
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