Berlin-based tech start-up zero44 has launched a platform to boost shipping’s participation in the European Union Emissions Trading System (ETS).
From 1 January next year, owners, managers and charterers have to buy emission allowances (EUAs) for every tonne of CO2 emitted.
“A large proportion of companies are not yet sufficiently prepared for this,” zero44 said.
Its software aims to cover all the processes and obligations of emissions trading.
zero44 has developed its service with three German shipping companies: MPC Container Ships, Harren Group and Zeaborn Ship Management.
Six other companies have already integrated the software into their systems and are testing it in their fleets, the start-up said.
Friederike Hesse, co-founder and managing director of zero44, added: “Since January this year, we have been working intensively on our EU ETS solution and, together with our development partners, have examined the complexity of regulation from all perspectives.
“We are proud that we have succeeded in developing a flexible, simple and at the same time complete solution. And we are very much looking forward to implementing it now with numerous customers.”
The firm was set up last year and identified the ETS as posing three big challenges.
Firstly, the ETS accounting is annual.
Reporting periods misaligned
Data verification is supposed to take place on 31 March in the year following the assessment period, and the submission of EUAs in the following September.
This is a problem for shipping because charter contracts are structured differently in terms of timing.
Then there is the multitude of business models and stakeholders involved.
And the registry used to account for all EUAs is not designed with the specifics and the requirements of shipping in mind, according to zero44.
No links can be established in the registry between the EUAs and the ships, voyages, charterers and ship managers.
Instead, these links must be managed within the shipping company itself so that a correct accounting of costs can be carried out.
zero44 claims to have addressed these problems with intra-year accounting, efficient coordination between all stakeholders and the transfer of data from the registry.
It also has agreements with data verification providers such as DNV, Swiss Climate, Verifavia and the Korean Register, as well as EUA traders Grey Epoch, CF Partners and Greenstar Capital.
