The launching of the Sea Cargo Charter (SCC) is warmly welcomed by Siglar. In the Siglar Carbon Monitoring & Reporting dashboard all chartering activities are monitored and reported according to the Sea Cargo Charter requirements.
The founders of Siglar, Sigmund Kyvik and Geir Olafsen, believe that a long-awaited common framework for measuring emissions from chartering activities takes the industry one big step closer to a benchmark for responsible chartering. They are happy to announce that the reporting standard in Siglar Carbon Monitoring & Reporting already is in line with the new framework, and that they welcome signatories to contact them. Here they share their thoughts on the new Sea Cargo Charter framework.
How will the new framework impact the green transition of the shipping industry?
Sigmund: We believe that the Sea Cargo Charter framework will be a major catalyst in the green transition of the shipping industry. Particularly two efforts are important. The SCC underlines the charterers role in cutting emissions from shipping, and it will make emissions data from shipping more coherent and transparent. Herein lies a great opportunity for cutting emissions.
Our experience in gathering and analyzing the type of data that the SCC requires has given us the opportunity to map emissions drivers, compare emissions and together with responsible charterers find ways of reducing them.
The SCC trajectories are consistent with the IMO’s initial strategy to reduce total annual GHG emissions from shipping by at least 50% by 2050 compared to 2008 levels. Although IMO is not yet fully aligned with the Paris agreement’s goal for each industry to reach carbon neutrality, we consider SCC an importing stepping stone towards greater transparency with regards to shipping emissions. This transparency helps develop a common understanding and a way to address shipping emissions. It will also ease Siglar’s work to develop a “common carbon language”, which is important in order to map value chain emissions - in this case, emissions driven by chartering activities and decisions.
As the saying goes: we cannot direct the wind, but we can adjust the sails. Responsible charterers and ship owners have now strongly adjusted their sails, and are setting course closer towards the Paris agreement.
How can Siglar assist companies who have signed up or want to sign up to the SCC?
Geir: Signatories commit to measuring emissions from their chartering activities, and to publicly report how their activities align with IMO targets. Our monitoring and reporting standards are based on the same principles as IMO DCS and EU MRV, although with higher level of detail. In the Siglar Carbon Monitoring and Reporting dashboard all chartering activities are monitored and reported according to the Sea Cargo Charter requirements. We already provide this service in the industry, and we are in position to start the monitoring for the signatories today.
Our experience tells us that most charterers already map emissions from their time charter fleet, while the spot voyages are more challenging due to less standard reporting from a higher number of companies. To ensure good reporting procedures for all parties involved, well ahead of the January 2021 deadline, new customers signing up with our Carbon Monitoring and Reporting service will be taken through an initial implementation process by Siglar. We will help to establish a common understanding through the charterers' organisation and with the shipowners involved.
How will the framework affect companies that are not yet signatories?
Geir: Even for companies that are not signatories the framework can provide guidance on how to report emissions from chartering activities. Responsible charterers and shipowners will benefit from using the Sea Cargo Charter as a reference, whether they are signatories or not. Greater transparency will in turn make it easier to promote and be rewarded for carbon reducing efforts.
How does the SCC framework support Siglar's aim to increase the carbon efficiency of the shipping and chartering industry?
Sigmund: Siglar’s Carbon Efficient Chartering approach can be described in three steps. The first is to measure, the second is to manage and the third is to take action to reduce. In our opinion, you have to measure to manage and you have to manage the emissions data to make efficient reductions. The SCC strongly supports step one and step two. The fact that some charterers and shipowners have agreed on a common set of reporting standards, makes the reporting process easier and supports the development of emission reduction targets. This paves the way for step three, where charterers can take action to achieve real emission reductions.
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