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EU ETS management made simple

Photo: ZeroNorth Soren Meyer CEO of ZeroNorth
Søren Meyer, CEO of ZeroNorth
Voyage optimisation and sustainability specialist, ZeroNorth, has set up a partnership with global energy firm, Vitol, so that its customers will be able to buy European Union Allowances (EUA) to cover EU Emissions Trading System (EU ETS) liabilities through Vitol’s carbon trading desk.

ZeroNorth’s Emissions Analytics module is designed to help shipowners, operators, and charterers calculate and manage their EUA exposure, a requirement since the EU ETS was extended to apply to shipping from January 1.

Now, the new functionality will enable clients to submit a request to Vitol for the purchase of the correct number of EUAs to meet their commitments. The module will also facilitate EU ETS exposure management between owners and charterers by ensuring robust monitoring, reporting and validation procedures.

The new arrangement will simplify the EUA acquisition process, particularly for smaller owners and operators who may not have their own arrangements to buy allowances. The move also provides a simpler and cheaper way to acquiring EUAs by avoiding potentially high commission fees charged by third parties, and possible requirements to buy more allowances in one transaction than are necessary.

ZeroNorth CEO, Søren Meyer, said: “EU ETS is transformative in terms of its mandate to reduce emissions from shipping. We understand that for some customers – and particularly those that lack the scale or processes to navigate the regulation – solutions are needed to help smooth their emissions reductions pathway. That’s why we have chosen to work with Vitol’s Carbon Desk, a leader in this space, and make it easier for customers of all sizes to seek to purchase the EUAs they need to have a positive impact on shipping.”

Vitol’s Head of Energy Transition – Shipping, Ian Butler, commented: “Vitol’s Carbon Desk has deep experience in carbon compliance markets, and with shipping entering the EU ETS this year, we hope our partnership with ZeroNorth will enable their customers to simplify their compliance workflows. We look forward to working with ZeroNorth users who may need to purchase EUAs, in an increasingly complex shipping environment.”