Swiss broker Ifchor is setting up a carbon emissions trading and advisory company with Dutch specialist ClearBlue Markets.
The bulker shop said Ifchor ClearBlue Oceans (ICBO) will help clients navigate changing legislation and source high-quality emissions offsets.
It will also structure and execute carbon offset projects or transactions.
"The new service is a response to the growing number of requests for shipowners and operators to offset their direct greenhouse gas ... emissions through voluntary carbon standards," the partners said.
Financing ambitions
ICBO will focus in the short term on neutralising carbon emissions and carrying out trades.
The company wants to help shipping become more familiar with carbon offset pricing.
In the longer term, it will help clients secure funding for more permanent solutions, including the use of renewable fuels, and carbon capture and storage.
The new operation has been contacted for further information.
Trifon Tsentides, director of business development at Ifchor, told TradeWinds: "We don't aim to take positions ourselves, rather provide access to carbon markets on behalf of clients.
"Yet, depending on the clients' level of needs, we can discuss bespoke solutions to retire credits on their behalf."
Tsentides said the combined strengths of a shipbroker and renowned carbon market specialist will help shipowners and charterers navigate their way through the complexities of carbon offsetting.
He said: "From creating plans and strategies, to executing and registering trades, we are providing clients with a complete set of actionable tools to reduce their operational carbon footprint."
Tsentides believes emissions from shipping are likely to fall under mandatory carbon pricing regimes in the future.
Voluntary pledges allow emitters to build their experience of the carbon markets and make a positive difference from today, he added.
Nicolas Girod, director of markets at ClearBlue Markets, explained that carbon offset markets have matured significantly since their inception more than two decades ago.
"Today, carbon emitters can purchase credits which enable investments in projects which make an impact, confident in the knowledge that these initiatives are independently verified, traceable and that they will meet their stakeholders' expectations," he said.
Girod believes the cost of offsetting emissions in shipping is far below the cost of abating them.
"As such, it offers participants the chance to plan in more longer-term direct emissions reductions while charting a climate-conscious course today," he said.
More and more shipbrokers and traders have implemented or are drawing up plans for carbon trading.
Trafigura announced on 9 April that it is setting up a carbon trading desk.
Hannah Hauman, the trader's head of crude oil in Europe, has been named global head of carbon trading, leading a team based in Geneva, Houston and Singapore. Trafigura has plans for additional hires.
Shipbrokers BRS, Clarksons and Affinity (Shipping) launched their carbon desks in late 2020 and were among the first in shipping to enter the ever-evolving market. UK broker Braemar Shipping Services is also plotting an entry into the sector.
