EU ETS tool launches

The EU ETS is a cap and trade system whereby carbon allowances based on calculated emissions can be brought or traded. It comes into force for shipping on 1 January 2024.

Coach Solutions’ new tool provides information about emissions for specific vessels and time periods, giving users a better picture of what allowances they will need.

“Working with the EU ETS requires learning to navigate an added level of complexity in charter party negotiations, so transparency of positions based on accurate data will be critical,” said Christian Råe Holm, chief operating officer, Coach Solutions.

“The Coach reporting tool enables shipowners and vessel operators to understand their exposure and manage the risks that result from the carbon price.”

Carbon credits are calculated based on the emission factors associated with different fuel types, as well as the geographical locations of loading and discharge ports and the reference year.

The new tool promises to streamline the process of tracking and managing emissions, making it easier for vessel operators to comply with regulatory requirements, says Coach.

Allowances can be bought on the free market and many owners have begun doing so already in the hope of achieving a lower price or to cover cargoes already in the book.

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 for buying the allowances to the charterer or operator with transparent data sharing being key to avoiding disputes.