Platts will maintain Aframax carbon-accounted freight assessments; proposes to reflect spot fixtures

Following immediate market feedback, Platts, part of S&P Global Commodity Insights, is updating its proposal regarding its daily carbon-accounted freight assessments. Instead of discontinuation, Platts proposes to maintain the assessments and to amend the methodology from a calculation to reflect spot values inclusive of European Union Emission Trading System (EU ETS) costs, effective March 1, 2024.

The subscriber note proposing to discontinue the carbon-accounted freight assessments can be accessed with this LINK.

Platts first launched the carbon-accounted freight assessments on four European Aframax routes Aug. 1, 2022, and on two Americas Aframax routes Nov. 1, 2022, which can be referenced in the subscriber methodology notes HERE and HERE, respectively.

In line with EU Directive 2023/959 of May 10, 2023, the carbon-accounted freight assessments fully reflect the cost to offset:

• 100% of carbon dioxide emissions for intra-EU voyages and time spent in European Economic Area (EEA) berths
• 50% of carbon dioxide emissions for all inbound and outbound voyages between EU and non-EU member states
• 0% of carbon dioxide emissions, while the ship is in non-member state ports

Effective March 1, 2024, Platts proposes the carbon-accounted freight assessments to reflect spot fixtures, bids and offers inclusive of EU ETS costs according to the European Parliament's phased-in approach as follows:

• 40% of emissions reported in 2024 payable in 2025
• 70% of emissions reported in 2025 payable in 2026
• 100% of emissions reported in 2026 payable in 2027

The affected assessments are: