Siglar Carbon and LSEG to cut shipping emissions from trading

London Stock Exchange Group (LSEG) and Norwegian predictive analytics company Siglar Carbon have agreed a new partnership to provide emissions data to trading desks, with the aim of supporting low-carbon decision making.

Analysis by the two companies suggests that access to the right emissions insight in commercial shipping decisions could drive down emissions and cost on specific routes by 50 %. 

The Siglar Carbon TC2e index estimates emissions from ships carrying gasoline between Europe and the USA via the TC2 route – one of the most commonly traded tanker routes. According to the index, the most efficient alternative would emit approximately 1,200 tonnes, with a related EU ETS cost of about US$25,000. The least efficient choice would emit 2,500 tonnes with an EU ETS cost of US$50,000.

In 2026, once the EU ETS is fully phased in the same costs would total $63,000 and $125,000 respectively.

The collaboration between the two parties aims to provide charterers or traders in the spot market with data that will allow them to locate the most carbon efficient alternative, reducing emissions and related costs.

Siglar says that a charterer or owner who is active in the European short sea market with 20 ships could generate approximately 100,000 tonnes of CO2 eligible emissions a year. At a carbon cost of $100 per EUA, this would mean an added cost of $10 million per year once the EU ETS is fully phased-in. Charterers and owners with larger vessels could easily generate ETS eligible emissions close to 500,000 tonnes of CO2 per year with an annual carbon cost of $50 million.

“When evaluating the different options in maritime trade the right insights are vital to cut emissions and costs. The partnership with Siglar Carbon provides our users with the necessary insight to make carbon efficient decisions,” said Fabrice Maille, Head of Shipping & Agriculture at LSEG.

“There are already ongoing efforts to decarbonise focusing on aspects such as fuels and ship technology but planning carbon-efficient voyages is a low hanging fruit and the coming carbon cost makes it more attractive than ever.”

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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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