MPC Container Ships, Harren Group, and Zeaborn Ship Management have cooperated with Berlin-based firm zero44 to develop a new EU ETS software solution that covers all processes and obligations of emissions trading.
The EU Emissions Trading Scheme (EU ETS) starts on January 1, 2024. Ship owners, ship managers, and charterers will then have to buy emission allowances (EUAs) for every tonne of CO2 emitted. A large proportion of companies are not yet sufficiently prepared for this – for them, zero44 now offers software that covers all processes and obligations of emissions trading.
According to the company, there are several issues with the upcoming EU ETS. Namely, the periods of shipping and the periods of EU ETS regulation are not aligned with each other. This is a problem for the sector because charter contracts are structured differently in terms of timing. Furthermore, owners, charterers, ISM managers, commercial managers, and cargo owners are affected by the EU ETS and must agree amongst themselves who is responsible for which measures within the EU ETS value chain and how often the settlement of allowance trading should take place. Lastly, the Union Registry – used to account for all EUAs – is not designed with the specificities and requirements of shipping in mind.
zero44 stated that its software solves all three challenges. It enables intra-year accounting of the required emission allowances, efficient coordination between all involved stakeholders, and adaptation of the Union Registry through the transferral of data from the Union Registry and assignment to the relevant accounting periods, vessels, and stakeholders.
The solution is available to the market and can be used in all its basic functionalities. These will be continuously expanded and adapted to the circumstances resulting from the constant development of the EU ETS regulatory framework.
The functionalities of the solution include a daily updated measurement of emissions based on vessel consumption data, a planning tool for calculating EU ETS costs of future voyages or periods as well as determining the financial EU ETS risks in the whole year, mapping of charter and ship management contracts regarding EU ETS, and partnerships with data verification providers such as DNV, Swiss Climate, Verifavia or Korean Register, as well as EUA traders such as GreyEpoch, CF Partners, Aither, Belektron, Vertis, Greenstar Capital, World Kinect Energy Services and marketplaces such as enmacc.
Companies that work with zero44 for their EU ETS management are free to decide which EUA traders and data verification providers they want to work with.
