Image:Tomas Østberg-Jacobsen
In a bid to simplify the complex landscape of calculating emission costs under the upcoming EU Emissions Trading System (EU ETS), Pure Car and Truck Carrier (PCTC) owner and operator UECC has unveiled a standardized methodology. This move aims to provide cargo owners with a clear understanding of their Scope 3 emission liabilities, streamlining the process and ensuring fair distribution of costs across the logistics chain.
The EU ETS, scheduled to be implemented in the shipping industry from January 1, 2024, mandates shipping companies visiting European ports to purchase EU Allowances (EUAs) corresponding to their annual CO2 emissions. UECC acknowledges the challenge faced by cargo owners in determining these emission liabilities due to varying calculation methods employed by different shipping lines. To address this issue, UECC has embraced a standardized approach rooted in an established industry framework.
UECC’s Energy & Sustainability Manager, Daniel Gent, highlights the administrative burden and potential confusion for cargo owners arising from different calculation formulas used by shipping lines. This diversity could lead to overcharging and an inequitable distribution of EUA liabilities. Gent emphasizes the need for cargo owners to pay for the actual emissions generated by their shipments, avoiding unjustified additional costs.
UECC has adopted a calculation formula based on the ‘Ro-Ro GHG Emissions Accounting Guidance,’ developed by the Association of European Vehicle Logistics (ECG) and Smart Freight Centre. This industry-standard methodology, aligned with ISO standards, sets the stage for a harmonized and transparent approach to calculating and reporting logistics GHG emissions in the Ro-Ro sector.
Gent underlines the importance of UECC’s EU ETS solution, aiming to provide clarity, transparency, and predictability for clients. The formula, rooted in verified emissions data and established industry standards, could potentially serve as the foundation for a uniform EU ETS formula, simplifying processes for the entire industry.
UECC’s Senior Manager Business Planning & Sustainability, Masanori Nagashima, emphasizes the role of high vessel utilization in lowering the carbon intensity of shipments. By maximizing cargo volumes per shipment and supporting green technologies, cargo owners can reduce their EU ETS cost liabilities. Nagashima calls for collaborative efforts across industry stakeholders to drive decarbonization in shipping.
Gent notes the growing focus of cargo owners on maximizing carbon reduction when selecting shipping services to meet their ESG targets. UECC’s roadmap for fleet decarbonization includes investments in green newbuilds, utilizing dual-fuel LNG PCTCs and innovative multi-fuel LNG battery hybrid PCTCs. These investments aim to cut emissions by approximately 25%, making green carriers more appealing to clients aiming to achieve sustainability goals.
UECC’s commitment to reducing carbon intensity extends to exploring alternative fuels like bio-LNG and synthetic LNG. The company’s proactive approach, including the use of carbon-neutral biofuels, aligns with the principles of the EU ETS, encouraging the adoption of low-carbon technologies.
As the maritime industry navigates the waves of environmental responsibility, UECC is not just sailing the seas but charting a course toward a greener, more sustainable future.
