Simpson Spence Young (SSY), the world’s largest independent shipbroker, has today announced the launch of a new, all-encompassing facilitation service which will ensure its customers’ regulatory and operational compliance ahead of the maritime sector’s entrance into the EU ETS.
In 2022, the EU ratified its decision to include the shipping sector into the EU ETS under the “Fit for 55” package. The scheme will target 100% of emissions from voyages between EU and EEA ports and 50% of voyage emissions on international routes to or from EU/EEA ports. From 2024 onwards, there will be a phased-in compliance requirement for operators to purchase an increasing percentage of EU Allowances (EUAs) to cover verified emissions (40% in 2024, 70% in 2025 and 100% in 2026).
As a consequence of the legislation, those affected will now have to understand the complexities of the regulatory requirements, the EU carbon market and contractual processes in order to be fully compliant which many in the industry see as the real challenge for the shipping sector.
The new SSY EU ETS service which is offered via a strategic partnership with carbon market specialists, CF Partners, will enable procurement and warehousing of EUAs on behalf of its customers, thereby alleviating the operational and regulatory challenges that operators would otherwise face as a consequence of the new legislation.
CF Partners have been a pioneer in carbon markets for over 15 years, particularly within the EU Emissions Trading Scheme (EU ETS). Operating one of the largest trading desks in the carbon compliance market, they have won numerous awards for their services.