Integrated into the Coach Solutions voyage optimisation platform, the calculator provides a simplified means of estimating the additional voyage costs of buying EU ETS carbon allowances against a specific vessel (source: Coach Solutions)
11 Jul 2023by Riviera News
Maritime data provider Coach Solutions has released a tool to enable vessel operators to calculate sailing costs under the EU Emissions Trading System (EU ETS)
From January 2024, the shipping industry will come under the ambit of the EU ETS, affecting vessels over 5,000 gt. Operators of such ships will pay for emissions allowances covering 40% of emissions from 2024, 70% in 2025, rising to 100% in 2026.
Ships travelling within the EU will be required to pay for all emissions, while 50% of emissions will require compensation for vessels arriving and departing from EU ports on routes that originate or terminate in ports outside of the EU.
To help owners comply with regulations and mitigate risk, the calculator uses a dynamic model for the cost of EU emissions allowances, allowing for price changes as the shipping industry joins the scheme and the availability of credit changes over time.
According to Coach Solutions, emissions allowances can already be bought on the open market and many owners have begun doing so already in the hope they will pay a lower price now than they would next year or to cover cargoes already in the book.
But many bulkers and tankers are not operated by owners, with the owner often transferring the responsibility of the allowances to the charterer as part of the charter contract. This will involve transferring emissions allowances from the charterer to the owner, either during the charter period or upon completion.
“We talked with our clients and sought their views on the ETS and their forward planning and found that despite the noise around this subject, there was no tool that could help them understand what it means for them,” said Coach head of performance management Christian Råe Holm.
“Our customers work across the different tramp segments in wet and dry bulk and it seemed obvious this kind of functionality could help our customers prepare and plan for this new era.”
Coach Solutions’ calculator will be integrated into the company’s voyage optimisation platform and provides a simplified means of estimating the additional voyage costs of buying EU ETS carbon allowances against a specific vessel.
Users can adjust parameters based on voyage length and speed to understand the impact of slow steaming or different route options.
Other products have been launched in recent months to help vessel owners comply with the EU ETS: Berlin-based Zero44 and Singapore-based MariApps will are also offering customers a single platform dealing with everything from reporting to compliance, stakeholder alignment and trading.
Riviera’s two-day Maritime Decarbonisation, Europe: Conference, Awards & Exhibition 2023 returns to Amsterdam on 26-27 September 2023, seeking to bring clarity to regulatory directions and decarbonisation pathways for both newbuilds and existing vessels
