Wilhelmsen Ship Management (WSM) is teaming up with ship broker Affinity Shipping to set up an independent company that will provide compliance services for the European Union emission trading system (EU ETS).
The two companies said the joint company would be “the first of its kind, offering a complete outsourcing service for shipping ETS management”.
They have signed a memorandum of understanding to provide a service that integrates technical ship management and carbon allowance procurement to support ship owners, managers, and operators.
The inclusion of shipping in the EU ETS will mean owners and operators will need to acquire emission permits for 40% of their applicable emissions in 2024, increasing to 70% in 2025, and 100% in 2026 and every year thereafter.
WSM brings technical management expertise including verification of emissions reports and compliance with the existing EU Monitoring, Reporting and Verification (MRV) framework, while Affinity has experience in the sale and purchase of carbon products, EU Allowances (EUA) registry management, analysis of ETS exposure, and regulated advice on emissions markets, they said.
“The partnership aims to provide a seamless transition into EU ETS compliance, as well as prioritising our clients’ interest by managing emission allowance in the most efficient way,” said Carl Schou, chief executive and president of WSM.
Richard Fulford-Smith, managing partner at Affinity Shipping, said the Oslo-based company to be called Hecla Emission Management will provide a turnkey solution for emissions reporting and trading support.
“It’s a powerful pooling of expertise that furthers our aim to assist clients in managing their financial exposure to the approaching energy transition,” he said.
The joint venture is expected to be established by the end of the first quarter this year and will be spearheaded by Oyvind Stordal, head of data and performance management from WSM and Hugo Wilson, head of carbon from Affinity.
An arm of the Wilhelmsen group, WSM is one of the largest third-party ship managers with more than 450 vessels and 11,000 active seafarers.
Affinity Shipping has had a carbon desk since 2018 and provides client-specific regulated advice and agency broker services for carbon emissions management.
