Shipbroker Simpson Spence Young (SSY) has launched new service that aims to help clients access the carbon allowance market to comply with the incoming EU Emissions Trading Scheme (ETS).

The London-headquartered firm has formed a strategic partnership with carbon market specialists CF Partners, which operates one of the largest trading desks in the carbon compliance market.

The announcement comes with less than three months to go before the EU ETS compliance requirement for vessel operators begins to be phased in.

The scheme covers all emissions from voyages between EU ports and those within the European Economic Area (EEA), as well as half of all emissions from voyages on international routes to or from EU/EEA ports.

Operators must purchase EU Allowances (EUAs) to cover 40% of verified carbon emissions from shipping next year. This requirement will rise to 70% in 2025 and 100% in 2026.

“By forming this strategic partnership with CF Partners, we are able to offer a full EU ETS service, including procurement and warehousing of EU Allowances, enabling our customers a smooth and simple route to market from the point of exposure to being fully compliant,” said James Ash, head of SSY’s Carbon desk, which is facilitating the new service.

Tim Atkinson, head of carbon sales at CF Partners, said that shipping clients should act now, not only to ensure compliance on 1 January but to take advantage of EUA prices, which are rising and are expected to rise further.

“The maritime sector is entering the EU ETS at a time of record EU Allowance prices and significant market volatility so companies who act early will be best placed to develop an effective compliance strategy,” he said.

“We are delighted to be working with SSY on this partnership to give their clients access to our full suite of carbon risk management and trading solutions.”

Stanko Jekov, SSY’s managing partner, called the new facilitation service “a real and practical solution for the shipping community as they continue to transition to a greener, cleaner future”.

SSY has been expanding and diversifying ever since Jekov took the top job at the start of this year.

It has bought two brokers of offshore vessels: F3O in Germany and Westshore in Norway.

Additional brokers have been hired in Tokyo and Beijing.

It has also appointed a new global head of finance, Jarl Magnus Berge, and a global head of research, Roar Adland.