Coach Solutions, a leading provider of maritime data solutions, has released a calculator to enable vessel operators to calculate sailing costs under the EU Emissions Trading System(EU ETS).
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. Users can adjust parameters based on voyage length and speed to understand the impact of slow steaming or different route options.
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 credits changes over time.
The EU ETS becomes a reality for the maritime industry from January 2024. To ensure a smooth transition, vessel operators will be given a three-year phase-in period where they will surrender allowances for a portion of verified emissions, from 40% in 2024 to 70% in 2025 and 100% in 2026.
Emissions allowances can already be bought on the open market and many owners have begun doing so already in the hope that they will pay a lower price now than they would next year or to cover cargoes already in the book.
However, for vessels not operated by the owner - which is the case for large parts of the bulker and tanker industry - the owner may transfer the responsibility of the allowances to the charterer as part of the charter contract. This will involve a transfer of emissions allowances from the charterer to the owner, either during the charter period or upon completion.