If you are in shipping, you know what this is about. EU ETS stands for European Emissions Trading System and makes polluters pay for their greenhouse gas emissions.

EUAs are European Emission Allowances and are a kind of certificates. One EUA entitles the holder to emit one ton of carbon dioxide. The price of 1 mt of CO2 is about 80 Euros today.

From next year on, shipping companies need to compensate CO2 emissions in EUAs. Chartering companies will have to provide the appropriate number of EUAs for the voyages they are responsible for. Thus – EUAs become another new currency in shipping.

But do you know how many EUAs you will need to provide by beginning of next year? It is pretty easy: You have to compensate 50% of all CO2 emitted for voyages to or from Europe and 100% for legs within European ports. Take the amounts of the different fuel types you are planning to burn, multiply it with the emission factors, don’t forget to take bio fuels into account (each bunkering has a different emission factor), multiply it with the CO2 price, and consider that for 2024 only 40% of the CO2 has to be compensated. Off course, you know that the MRV year ends with the first arrival in 2025 (then in 2025, we have 70%). So far, so easy, right?

Well, now it’s getting more complex. Don’t forget that European ports are only counted if you are loading/discharging etc. Example: Houston – Rotterdam – Bremen – Singapore is 50% – 100% – 50%. If you do Houston – Rotterdam – Southampton – Bremen – Singapore, you have 50% – 50% – 50% – 50% (but this is still a discussion if you may have UK ports as foreign ports in this equation). But if you do Houston – Rotterdam – Bremen – Singapore and you are just bunkering in Rotterdam and loading in Bremen, it is 50% – 50% – 50%. And if you skip Bremen and just bunker in Rotterdam, it will be 0% – 0% – 0%.

Do you want to do this in Excel?

CharterWorks does this for you. Automatically. For each voyage. Easy. Give us a call and we show you how.