Platts introduces carbon footprint ratings for container shipping

Platts, part of S&P Global Commodity Insights, has announced the launch of daily carbon-balanced containerized freight assessments on 10 major routes from March 1, 2023 – a move aimed at bringing greater transparency into the evolving shipping carbon emissions market bring to.

The new ratings will reflect the additional costs required to offset 100% of ships’ carbon emissions through the European Union’s Emissions Trading Scheme (ETS). In other words, the assessments aim to provide transparency and accountability for the carbon emissions associated with shipping containerized goods on the covered routes. By including the cost of carbon offsetting in the assessment, Platts provides a more accurate picture of the true cost of shipping goods, including environmental costs.

Platts first proposed introducing these ratings in a subscriber’s note published in January.

Platts has been publishing daily carbon-balanced tanker cargo assessments since the second half of last year and cargo carbon intensity values ​​and premiums since October 2021. These assess the impact of greenhouse gas emissions on the transportation of various grades of crude oil from production storage terminals to typical refinery sites around the world.

Calculations use the next December daily price for EU emission allowances published by Platts. The ship speed and bunker fuel consumption used in the calculations of the new carbon-balanced cargo ratings have been determined through extensive market research and reflect market practice.

The EU reached a tentative agreement at the end of 2022 to include shipping in its Emissions Trading Scheme (EU ETS). As part of the EU ETS, ships with more than 5000 GT must purchase and surrender emission certificates for their CO2 emissions from 2024. Under the latest proposal, 100% of emissions are from travel and port calls within the EU and EEA, including Iceland, Liechtenstein and Norway, and 50% of emissions from travel to or from the EU/EEA are subject to the EU ETS.

Overall, Platts’ new assessments aim to provide greater transparency and accountability for the shipping industry’s carbon emissions, which are a major contributor to climate change. As the world works to transition to a low-carbon economy, these types of initiatives are becoming increasingly important to drive meaningful change.

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