Emissions to debt comparison tool launched

METIS Cyberspace Technology has updated its cloud-based data acquisition and ship performance reporting system to add an analysis tool to predict the trade-off between emissions reduction and debt servicing for ships financed under the Poseidon Principles.

Designed to incentivise maritime de-carbonisation, the Poseidon Principles offer a framework for financial institutions to lend in line with IMO goals to halve greenhouse gas emissions by 2050. Some 20 institutions have signed up to the Principles, representing over US$150 billion in loans – more than a third of shipping’s global financing.

Assessing whether ships merit further investment to keep pace with the IMO average efficiency ratio (AER) underpinning the Principles will be a fundamental element of ongoing implementation but, to date, exact emissions targets have not been forthcoming.      

To assist with this challenge METIS has created a Poseidon Principles Emissions INDEX to allow owners to predict whether their ships would benefit most from investment, a change in operating profile or disposal in response to advancing emissions rules, analysing actual vessel data to create a ship-specific recommendation.

“The owner calculates an individual ship’s standard deviation from the AER target, then considers the impact of investments or operating guidance on overall costs including outstanding debt,” said Serafeim Katsikas, Chief Technical Officer, METIS.

“These calculations also offer a prediction on the costs of servicing debt in the context of emissions restrictions and therefore an assessment of the ship’s viable lifespan.”

“We have built on the METIS infrastructure, drawing on signals from the ship and external sources to create structured and meaningful indexes for the Poseidon Principles. Following the recent launch of METIS Charter Party Agreement ship performance monitoring, we are bringing another maritime game changer to market. Already, a pilot has seen one owner conclude that, while some of its ships may never need investment to cut emissions and others need action now or at a future date, while two should be disposed of immediately.”

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Rob O'Dwyer

Rob is Chief Network Officer and one of the founders of Smart Maritime Network. He also serves as Chairman of the Smart Maritime Council. Rob has worked in the maritime technology sector since 2005, managing editorial for a range of leading publications in the transport and logistics sector. Get in touch by email by clicking here, or on LinkedIn by clicking here.

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