A partnership between London Stock Exchange Group and Siglar Carbon provides actionable emissions data to trading desks, where great carbon and cost reduction potential can be unleashed, according to the company's release.
International shipping emits more than 1 billion tonnes of CO2e per year, a number that is projected to rise. 85 million of these tonnes will be included in the EU Emissions Trading System (EU ETS) in 2024, leading to increased cost for owners, charterers and traders who fail to include emissions and its related cost into their daily decisions.
London Stock Exchange Group (LSEG) and Siglar Carbon now partner to provide shipping professionals with the insights needed to factor carbon into their decisions. Analyses by the two companies show that access to the right emissions insight in commercial shipping decisions can drive down emissions and cost on specific routes by 50 %.
The Siglar Carbon TC2e index estimates emissions from ships carrying gasoline between Europe and the USA via the TC2 route - one of the most commonly traded tanker routes. According to the index, the most efficient alternative would emit approx. 1,200 tonnes and the related EU ETS cost would be approx. 25,000 USD. The least efficient choice would emit 2,500 tonnes with an EU ETS cost of 50,000 USD. In 2026, once the EU ETS is fully phased in the same cost would add up to 63,000 and 125,000 USD respectively. The collaboration gives charterers or traders in the spot market access to data which will allow them to instantly locate the most carbon efficient alternative.
Detailed information about emissions and carbon cost is also crucial for ship owners. Siglar analyses show that a charterer or owner who is active in the European short sea market with 20 ships could generate approx. 100,000 tonnes of CO2 eligible emissions a year. At a carbon cost of USD 100 per EUA, this would mean an added cost of USD 10 million per year once the EU ETS is fully phased-in. Charterers and owners engaged in larger vessels could easily generate ETS eligible emissions close to 500,000 tonnes of CO2 per year with an annual carbon cost of 50 million USD.
LSEG (London Stock Exchange Group) is a global financial markets infrastructure and data provider. LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific.
Siglar is an independent Norwegian provider of actionable emissions insights helping to reduce ship emissions and spot commercial opportunities.