Platts launches Aframax carbon emission charges Sept 1

Platts, part of S&P Global Commodity Insights, is launching carbon emission charge assessments for its daily Aframax dirty tanker freight assessments on the UK Continent-to-UK Continent, Baltic-to-UKC, Ceyhan-to-Mediterranean, Black Sea-to-Med and US Gulf Coast-to-UKC/Med routes, effective Sept. 1, to complement the all-inclusive carbon-accounted freight assessments launched on the above stated six routes in 2022.

The carbon emission charge assessments reflect the additional cost to offset 100% of the carbon dioxide emissions created on voyages involving EU ports and European Economic Area berths taking into account recent guidance in the final text on the EU's Emission Trading System released by the the European Parliament and the Council of the European Union in the Official Journal of the European Union on May 16, 2023, in the following document (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32023L0959)

In line with the final EP compromise text, the carbon emission charge assessments reflect the cost to offset:

• 100% of carbon dioxide emissions for intra-EU voyages and time spent 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

Platts publishes the values as defined in the relevant European legislation and will reflect any updates accordingly. The most recent methodology update is published here (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/050323-platts-to-amend-carbon-accounted-aframax-freight-assessment-methodology-june-1)

These new assessments are published in Worldscale points and in US dollars/mt.

The new assessments are:

The subscriber note for the EMEA-loading and Americas-loading carbon-accounted freight assessments launch was published here (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/080122-platts-launches-carbon-accounted-aframax-tanker-assessments-on-four-european-routes-aug-1), and the launch note for carbon-accounted freight assessments for loading in the US Gulf Coast was published here (https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/103122-platts-launches-carbon-accounted-usgc-ukcmed-aframax-tanker-assessments-nov-1) on Nov. 1, 2022.

On June 1, the methodology underlying the carbon-accounted Aframax freight assessments was amended to reflect the recent EP EC guidance referenced above.

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:

The new assessments are published in the Platts Dirty Tankerwire and Platts Dirty Tankerwire Monthly. The carbon accounted freight assessments and new emission charge assessments are published on the new Platts Shipping Alert pages SHP 2622, SHP 2623, SHP 2624, SHP 2625 and the new Platts Tanker Alert pages PGT 4008, PGT 4009, PGT 4010 and PGT 4011.

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