UK´s Simpson Spence Young (SSY) shipbroker is cooperating with carbon market specialist CF Partners, to give to its client’s access to CF Partners full suite of carbon risk management and trading solutions.
The new solution will ensure regulatory and operational compliance ahead of the maritime sector’s entrance into the EU ETS, as the shipbroker claims, and also carbon market access for operators in the maritime sector.
In 2022, the EU ratified its decision to include the shipping sector into the European Emissions Trading Scheme, under the “Fit for 55” package.
The scheme will target 100% of emissions from voyages between EU and EEA ports and 50% of voyage emissions on international routes to or from EU/EEA ports.
From 2024 onwards, there will be a phased-in compliance requirement for operators to purchase an increasing percentage of EU Allowances (EUAs) to cover verified emissions (40% in 2024, 70% in 2025 and 100% in 2026).
As a consequence of the legislation, those affected will now have to understand the complexities of the regulatory requirements, the EU carbon market and contractual processes in order to be fully compliant.
The new SSY service will enable procurement and warehousing of EUAs on behalf of its customers, thereby alleviating the operational and regulatory challenges that operators would otherwise face as a consequence of the new legislation.
“By forming this strategic partnership with CF Partners, we are able to offer a full EU ETS service, including procurement and warehousing of EU Allowances, enabling our customers a smooth and simple route to market from the point of exposure to being fully compliant,” James Ash, SSY carbon specialist notes.
Stanko Jekov, SSY managing partner, said: “It’s no secret that the road to decarbonization brings with it a number of key challenges with regulatory compliance being a significant challenge for many in the industry. Through our EU ETS compliance service, we are offering a real and practical solution for the shipping community as they continue to transition to a greener, cleaner future”.
