Platts proposes to launch Yearly, Dynamic Carbon Accounted Base Rates and EUA charges for assessed routes from Dec. 1

Platts, part of S&P Global Commodity Insights, proposes to launch yearly and dynamic carbon-accounted Base Rates on 823 assessed routes involving EU ports, effective Dec. 1, 2024.

These rates assessed in $/mt would expand the current suite of Platts Base Rates based on conventional fuel, which was launched on May 15, 2023. Details can be referenced in the subscriber methodology notes here.

The new carbon-accounted Base Rates would reflect all the costs of a round trip for a tanker, considering one or more loading and discharge ports. These rates will include not only fuel expenses, port costs, agency fees and other well-known miscellaneous costs, but also EU Allowance charges. In line with EU Directive 2023/959 of May 10, 2023, the carbon-accounted Base Rates would fully reflect the costs to offset:

• 100% of carbon dioxide emissions for intra-EU voyages and time spent in European Economic Area 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-EU member state ports.

The yearly carbon-accounted Base Rates would include an average of spot values of EUAs, from Oct. 1 of the previous year to Sept. 30 of the current year (symbol code ABQVQ00). The dynamic carbon-accounted Base Rates would include the spot value of EUA for the corresponding date (symbol code EADLP00). Additionally, yearly and dynamic EUA charges would be published as standalone values to represent the estimated cost of carbon emissions of each assessed route. These charges would be calculated based on the distances within Emission Control Areas and outside ECA for each assessed route and would be expressed in US dollars. The methodology adheres to the phased-in approach outlined by the European Parliament regarding the reporting and payment of emissions, as indicated below:

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

Please send all comments or questions by Oct. 31, 2024, to tankers@spglobal.com and pricegroup@spglobal.com.

For written comments, please indicate clearly if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.