Platts to amend carbon-accounted Aframax freight assessment methodology June 1

Platts, part of S&P Global Commodity Insights, will amend the assessment methodology for its daily carbon-accounted Aframax dirty tanker freight assessments on the UK Continent-UK Continent, Baltic-UKC, Ceyhan-Mediterranean, Black Sea-Med and US Gulf Coast-UKC/Med routes, effective June 1, to reflect recent guidance in the final compromise text on the EU's Emissions Trading System released by the European Parliament Environmental Committee on Feb. 9 in the following document.

Effective June 1, Platts carbon-accounted Aframax freight assessments, in line with the final European Parliament compromise text, will reflect the cost to move crude oil or fuel oil on an Aframax tanker on each route based on a round-trip voyage, including the additional cost required to offset:

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

Platts launched the EMEA-loading carbon-accounted freight assessments Aug 1, 2022, available here.

Platts launched the USGC-loading carbon-accounted freight assessments Nov 1, 2022, available here.

The assessments affected by the methodology change are:

The vessel speed and bunker fuel consumption used in the calculations of the carbon-accounted freight assessments were arrived at by extensive market survey and reflect market practice. The assessments are published in Worldscale points and in US dollars/mt.

The calculations use the daily EU Emission Allowance Nearest-December price (EADLP00) as published by Platts. The tank-to-wake carbon emissions based on the fuel consumption are calculated using the carbon conversion factors published in Annex 1 of Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport.

These carbon conversion factors, published by Platts since Aug. 1, 2022, are:

Platts publishes the values as defined in the relevant European legislation and will reflect any updates accordingly.

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