Risk & Compliance Whitepaper: Navigating the EU ETS
An actionable guide to risk-managed EU ETS participation for ship owners, their chartering chains, and EUA traders
Infospectrum's ESG Desk is pleased to release its whitepaper, “Navigating the EU ETS: Practical Insights For The Maritime Industry”. This unique appraisal of shipping’s inclusion within the EU ETS helps readers to consider new regulatory requirements within the context of the sector’s unique characteristics and operating structure; identifying practical risks and considerations determined through our Analysts’ research, Infospectrum’s institutional knowledge, and perspectives shared discreetly by our global network of well-placed market sources.
This 27-page paper comprises:
- ‘Shipping Company’: The Definition, The Complication
- Extending The EU ETS To Cover Maritime Emissions
- Scope
- Coverage
- Timelines
- Consequences of Non-Compliance
- Practical Insights: Lessons From EU MRV On Timelines
- ‘Shipping Companies’, The Union Registry & The Attribution List
- Practical Insights: Identifying The Counterparty With Compliance Obligations & Associated Financial Risk
- EUA Trading Channels: Auctions, Exchanges & Over-The-Counter Trades
- Auctions
- Exchanges
- Practical Insights: Regulation Of Financial Entities & Speculative EUA Trading Strategies On Exchanges
- Over-The-Counter (OTC) Trades
- Practical Insights: Warehousing, Credit & Mutual Counterparty Risk In The OTC Channel
- EUA Pricing
- Practical Insights: EUA Pricing Volatility, REPowerEU & The Market Stability Reserve (MSR)
- Practical Insights: Price Impact Of EUAs Per Tonne Of Bunker Fuel Consumed
- Commercial Accountability & Reimbursement Across The Counterparty Chain
- Practical Insights: Reimbursement Across The Counterparty Chartering Chain
- Practical Insights: Examples Of EUA Costing On Different Voyages
- Conclusion