zero44 launches EU ETS management software

Berlin-based start-up zero44 has launched a new software system for use by maritime companies in managing their obligations under the EU Emissions Trading Scheme (EU ETS), which starts on 1 January 2024.

From next year, ship owners, managers and charterers will have to buy emission allowances (EUAs) for every tonne of CO2 emitted, and share data with related stakeholders on items like vessel schedules and emissions to manage their responsibilities.

zero44 believes that a large proportion of companies in the shipping sector are not yet sufficiently prepared for these requirements, and has created an EU ETS application to cover the various processes and obligations of emissions trading.

EU ETS accounting is annual, with data verification to take place on 31 March in the year following the assessment period and EUAs to be submitted the following September, regardless of charter contract periods. This will require EU ETS settlements to be carried out during the year close to the time of each completed voyage.

Owners, charterers, ISM managers, commercial managers and cargo owners will also have to agree amongst themselves who is responsible for different aspects of the EU ETS value chain and how often the settlement of allowance trading should take place. These agreements can then create a knock-on effect on others, for example an agreement between the owner and the charterer has an impact on the agreements between the owner and the ISM manager.

In addition, zero44 notes that the Union Registry, used to account for all EUAs, is not designed with the requirements of shipping in mind. No links can be established in the Union Registry between the EUAs and the ships, voyages, charterers and ship managers involved. Instead, these links must be managed within the shipping company itself so that a correct accounting of costs can be carried out.

The new software aims to deal with these issues by enabling intra-year accounting of the required emission allowances, managing coordination between all involved stakeholders, and transferring data from the Union Registry for assignment to the relevant accounting periods, vessels and stakeholders.

The application will provide a daily updated measurement of emissions based on vessel consumption data, along with a planning tool for calculating EU ETS costs of future voyages or periods and determining financial EU ETS risks for the whole year.

The system has been developed in collaboration with three shipping companies, MPC Container Ships, Harren Group and Zeaborn Ship Management. Six other companies have already integrated the software into their workflows and are testing it within their fleets.

“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,” said Friederike Hesse, co-founder and Managing Director at zero44.

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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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