New partnership: Oriani represents OceanScore for the new European emissions trading system, EU ETS.

by | Nov 5, 2023

The time has come.

Starting January 1, 2024, shipping will be included into the European Union Emissions Trading System (ETS). The cost levied onto the industry will quickly reach €8bn and more. As regulatory and operational preparations reach a critical point, the expectation of a new, potentially costly, and hazardous economic environment appears significant. Forecasts indicate that the average ship in the EU could face an annual carbon credit expenditure of €500,000 once the regulation is fully implemented.  

During this transitional period, ORIANI , aiming for immediate and optimal management of EUAs (Emission Allowances), is proud to collaborate with OceanScore.

OceanScore is recognized as one of the leading European providers for managing and trading EUAs. Its simplicity and user-friendliness facilitate the management of ETS challenges for shipowners, operators, and handlers. Furthermore, OceanScore’s platform offers unparalleled transparency and absolute control in a complex, unprecedented, and challenging managerial and economic process.

EU ETS Regulation

It is an expense applicable to voyages conducted within or outside the EU. Specifically, for 100% of emissions from voyages within the EU, 50% from voyages from outside the EU to the EU, or 0% if they do not touch any EU port. Total emissions are calculated based on the ship’s speed, consumption, and the fuel used. This number is then reduced gradually. The calculated number is the allowances that the company must surrender based on its emission costs in total.

In one of its recent announcements, the European Union (EU) clarified that owners will bear the main responsibility in the upcoming Emissions Trading System (ETS). However, the EU also allowed flexibility, permitting owners to delegate this responsibility to Designated Operational Entities (DOC) through mutual agreement.

Alongside the industry’s struggle towards ETS implementation, the next key step involves assigning Owners or Managers belonging to Union Registries for a specific country to establish an Operator Holding Entity.

Initially scheduled for February 2024, there are indications of a possible delay. Nevertheless, interested parties are advised to continue their preparations.

There is some logic in the gradual introduction to give the industry time to adjust, starting with a specific percentage of total emissions for the first two years: 40% in 2024, 70% in 2025, and finally, 100% from 2026 onwards.

The Team and the Product

Starting in September 2023, more than 50 shipping companies have already registered on the OceanScore platform. This strong participation demonstrates its effectiveness in addressing the unique challenges posed by impending emissions trading regulations.

With over 1,000 active vessels in such a short time frame, the benefits arising from the use of the ETS Manager platform and its multiple capabilities are apparent. It is divided into specific categories with a priority sequence to guide the user through a series of required actions. Notably, some of these include the consolidation of daily ship reports (noon Reports), on/off hire recording, Statement of Facts (SoF), allocation, and demand for corresponding EUAs.

Invaluable feedback, questions, and suggestions received daily from shipping companies inspire continuous improvement and development of the product and services.

 

Source: OceanScore – Monitoring distribution, requests, and collection of EUAs from various charterers and owners.

Continuous Evolution

As the shipping industry prepares for this significant regulatory change, OceanScore stands as a beacon, guiding ships through the seas of change with a reliable and innovative ETS solution.

OceanScore is committed to addressing all the above with humility and as an ongoing obligation to its customers. The company’s goal is to further invest in improving its platform and enhancing customer service. Thus, Oriani will be a fundamental pillar in the daily and overall support of all Greek shipping companies.

Conclusion

The number one priority should be the establishment of procedures for managing, ensuring transparency, and maintaining control of ETS responsibilities. All interested parties are called upon to approach this critical transition with careful planning and collaboration, both internally across various company departments and externally through proper agreements and management tools.

ORIANI  is committed to assisting the Greek shipping community in the optimal management of risks associated with the EU ETS through the most effective solution, OceanScore.

Oriani