Page 172 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΟΚΤΩΒΡΙΟΣ 2024

CARBON MARKETS

on things like registry use, new contracts,
price volatility, and the ability to pass costs
through to customers.

❻ What do shipping companies need
to be aware of in future?
One significant development is the potential
inclusion of shipping in the UK’s ETS market
in 2027. This is a separate carbon market in
the UK only, which followed the UK’s exit
from the EU. It is very similar to the EU ETS
and very much mirrors the main components
of the EU scheme, but there are important
differences. UK Allowances (UKAs) are a dif-
Shipping companies are ferent underlying compliance instrument; the
familiarising themselves with the compliance deadlines are different, and the
market dynamics and taking a slow UK’s carbon market is less liquid due to its
approach to their procurement of smaller size.
EU Allowances.
❼ What are your thoughts on the cur-
rent EU carbon permit price, and
how do you see it evolving in the
near future?
Carbon prices are relatively soft now, so this
is probably a good opportunity to acquire vol-
ume at a favourable price. In recent years,
we have seen EUA prices move in a range of
approximately €50 to €100 per metric tonne,
but there is real potential for prices to move
much higher. Some price predictions from
2026 onwards are above €100 per tonne. A
higher price over time is something that all
analysts in the market agree on, as the sup-
an approved and independent verification ply of allowances under the EU ETS is set to
and inspection company to verify their emis- become much tighter in the future due to the
sions each year. Then, they must make sure EU wanting to fully decarbonise its industry
they purchase enough carbon allowances by 2040.
(called EU Allowances, or EUAs) to cover
that volume of emissions. So, they need to ❽ What is your overall approach to
become familiar with how to buy carbon helping companies?
allowances and how to surrender them to Our core team has been trading carbon allow-
cover their verified 2024 emissions before ances since 2004, so we have over 20 years
the 30 September 2025 deadline. of experience in the carbon market, more
than any other team out there. That means
❺ What similarities do you see we know what companies need to do and
between the shipping sector and how and when they should do it. We work
other sectors in the EU ETS? very closely with our clients to help them
Shipping is the second transport sector to manage their exposure by ensuring that they
enter the EU ETS, following the aviation sec- have the tools and understanding to make
tor, which entered the scheme in 2012. Both well-informed decisions. We also provide
account for roughly 3% of global greenhouse them with a knowledgeable and efficient
gas (GHG) emissions. Shipping companies carbon allowance procurement service. By
are behaving in a similar way to how airlines offering them a tailor-made approach, they
did in 2012: they are familiarising themselves avoid becoming non-compliant, and we are
with the market dynamics and taking a slow able to help them make decisions that are
approach to their procurement of EU Allow- cost-effective and appropriate for their spe-
ances. There is also an element of discovery cific needs.

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