Platts to launch yearly, dynamic carbon-accounted base rates, EUA charges for assessed routes, effective Dec 1

Platts, part of S&P Global Commodity Insights, will launch yearly and dynamic carbon-accounted base rates on 823 assessed routes involving European Union ports, effective Dec. 1, 2024.These rates assessed in $/mt will 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 will 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 EUA charges. In line with EU Directive 2023/959 of May 10, 2023, the carbon-accounted base rates will fully reflect the costs 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-EU member state ports. The yearly carbon-accounted base rates will include an average of spot values of European Union Allowances (EUA), from Oct. 1 of the previous year to Sept. 30 of the current year (symbol code ABQVQ00). The dynamic carbon-accounted base rates will include the spot value of EUA for the corresponding date (symbol code EADLP00)

Additionally, yearly and dynamic EUA charges will be published as standalone values to represent the estimated cost of carbon emissions of each assessed route. These charges will be calculated based on the distances within Emission Control Areas (ECA) and outside ECA for each assessed route and will be expressed in USD. The methodology adheres to the phased-in approach outlined by the European Parliament regarding the reporting and payment of emissions: 70% of emissions reported in 2025 payable in 2026 and100% of emissions reported in 2026 payable in 2027. Please send any feedback, comments or questions to tankers@spglobal.com and pricegroup@spglobal.com.

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