Finnish shipowners ESL Shipping and Viking Line have teamed up to launch an emissions reporting system for cargo owners.

ESL, a bulker company, and its ropax partner are working with software company Attracs, Abo Akademi University and the PBI Research Institute to launch the Driving Emissions Out of Shipping (DEOS) project.

"The alarming report from IPCC published in mid-August underlines the need for proactive actions in all sectors," the companies said.

"Additionally, emissions reporting in shipping has received increased attention after the EU Commission released their proposal for the new requirements on energy used on board ships," they added.

The aim of the project is to develop emissions reporting models to enable cargo owners to understand the carbon footprint of their supply chain.

They will then be able to pick verified low-emission transport to give them a competitive advantage, ESL and Viking Line said.

Consumers are ready

Magnus Gustafsson, head of research at the Laboratory of Industrial Management at Abo Akademi University, added: "Recent research has shown that consumers today are ready for, if not even demanding, sustainable products."

"By opting for low-emission transportation and bringing emissions from shipping into the consumers' awareness, cargo owners can support their customers in making better choices in their everyday life," he added.

DEOS has received financing from Business Finland, the Finnish government agency for innovation funding.

The project is scheduled to last until spring and is currently "sailing forward with full speed", the companies said.

Pilot cases of emission reporting are progressing and the partners are in talks with policymakers and cargo owners.

Last month, ESL Shipping selected an Indian shipyard to build a series of energy-efficient electric hybrid bulkers.

The 5,350-dwt vessels will be constructed by Chowgule & Co for delivery from the third quarter of 2023 and into 2024, at a cost of more than $82m (€70m).

The ships will be run by Swedish subsidiary AtoB@C Shipping to meet growing demand in the sector.

ESL, owned by the Aspo group, said the ice-class 1A vessels are "top of the market" in terms of cargo capacity, technology and innovation.

The deal comes with options for "several" more ships, the company added.