IMOS - Carbon Expenses

Carbon Pricing

The Carbon Pricing feature is available on the Estimate level to give charterers a view into voyage-adjusted TCE and aid in business decision-making. We developed carbon pricing features to estimate costs related to carbon expense management as imposed by governing bodies or counterparties in some cases.

Several line items were added to the sub-P&L line items in Voyage Estimate to account for carbon pricing:

• Total CO2 cost

• CO2 adjusted profit

• CO2 adjusted time charter estimate.

To set up the CO2 pricing, follow these steps:

Step 1 - Enable the following configuration flags

• CFGEnableCO2Pricing

  1. Description: When enabled, CO2 Pricing will be included in Bunker Planning and Estimator PnL.

  2. Default Value: N

• CFGCO2DefaultCurrency

  1. Description: Default currency for CO2 emissions pricing.

  2. Default Value: EUR

• CFGCO2DefaultPrice

  • Description: Default price per MT for CO2 emitted, expressed in the currency specified with CFGCO2DefaultCurrency.

  • Default Value: 0

• CFGDefaultIncludeCarbonExpInPnl (optional)

  1. Description: Automatically include emissions expenses from the Carbon Calculator in the P&L for new estimates

  2. Default Value: N

Requires schema version 360

Step 2 - Access carbon pricing via Estimates → Bunker Planning

Once the configuration flags have been enabled and set up, you can access carbon pricing by navigating to Estimates within the Chartering module and selecting Bunker Planning from the Menu dropdown.

Open

Step 3 - Enter the desired currency and cost

Note: The exchange rate will populate automatically (based on the default currency as set up in the settings):

Open

The P&L will calculate the CO2 cost, CO2 Adjusted Profit (Loss), and CO2 Adjusted (Net) TCE:

You can include CO2 expense in your total voyage costs by selecting the Include in PnL checkbox in the Carbon Pricing form. Once selected, emissions will show as an expense in the Voyage Estimate P&L.

Carbon Calculator

Accessing the Carbon Calculator

You can open the Carbon Calculator from the Voyage Manager. Select the Sustainability icon in the sidebar menu and choose Carbon Calculator from the … dropdown list as shown in the following image.

The Carbon Calculator can also be accessed via the Analysis menu or Voyage Manager.

EU ETS Modifiers

The Carbon Calculator allows you to incorporate ETS modifiers and apply a price to carbon emissions. You can also view the total EU ETS emissions in MT.

EU ETS percentages are included in Carbon Pricing. The percentage values for each leg of an itinerary will apply to the Carbon Cost calculation by default and will be determined by the Load and Discharge ports.

Sea and Port Consumption

You can view Sea and Port consumption separately. To improve the accuracy of calculated emissions values, the Sea ETS Emission (MT) and Port ETS Emission (MT) columns are editable for both Voyages and Voyage Estimates in the Carbon Calculator. When a field is overridden, the new value appears in blue text. If a field is cleared, it returns to the auto-calculated value, which appears in black text.

The Carbon Calculator assigns Anch In and Pilot-to-Berth emissions to the previous sea leg and Berth-to-Pilot and Anch Out emissions to the following sea leg. Consumption is prorated based on time and uses the following logic:

• Anch In consumption is added to the previous sea leg (the sea leg associated with the current port call)

• Alongside consumption is the port consumption in the Carbon Calculator

• Anch Out consumption is added to the next sea leg (unless it is the last port call)

To view the Consumption tab in the Voyage Manager and add the Anch In, Alongside, and Anch Out fields to the Port/Date tab, visit the article https://vesonjira.atlassian.net/wiki/spaces/help/pages/64886847/VIP+-+Voyage+Manager#Consumption-Tab.

When Port Activities include ROBs, the berth consumption calculation uses the difference in ROBs between the first All Fast and the final Last Line Port Activity; this value updates the Port consumption in the Carbon Calculator. The consumption prior to berth arrival is added to the previous sea leg, and the consumption after leaving the Berth is added to the subsequent sea leg. This update reflects the EU ETS logic that defines sea legs as berth-to-berth. For more information about MRV regulations and reporting on berth consumption, visit the article https://vesonjira.atlassian.net/wiki/spaces/help/pages/64885974.

ROB data validation

All Fast and Last Line port activity fuel ROB values are validated on the Voyage Manager and Port Activity forms. ROB values are considered invalid if they show negative consumption or if some values are populated while others are left missing. Invalid records are highlighted on the ROBs grid within the Port Activity form, and an error message is shown on the Voyage Manager validation display.

EU Port of Call fields

To account for the vessel position before and after the voyage and drive the correct ETS percentages, the Pre-Voyage Port of Call and Post-Voyage Port of Call fields are in the Carbon Calculator for Voyages and Estimates. When set, these fields impact calculated values in the Sea ETS % and Port ETS % fields.

EU ETS Exclusion (STS)

When the EU ETS Exclusion (STS) checkbox is selected for a port in the Port Properties Panel, the port will be excluded as a Port of Call from the Carbon Calculator to drive the correct EU ETS percentage.

Emissions for vessels below 5000 GT

According to EU regulations, EU ETS emissions are not applicable to vessels below 5000T. When the GRT Int’l field in the Vessel Details Tab is below 5000, there should be no ETS expenses or tonnage calculated.

As of 1 January 2025, companies must report emissions for the following ships:

Cargo and passenger ships of or above 5000 GT;
Offshore ships of or above 5000 GT;
Offshore ships and general cargo ships below 5000 GT but not below 400 GT.

Source: https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector/faq-maritime-transport-eu-emissions-trading-system-ets_en

Phase-In logic

The Carbon Calculator supports Phase-In percentages. The Phase-In logic applies the relevant percentage for that year to the carbon expense and displays the values in the Phase-In % column. For cross-year scenarios, emissions will be allocated based on the portion of a voyage leg in a specific year.

Outermost regions

When the Outermost Region checkbox is selected in the Port Properties Panel, the system will account for Outermost Regions.

According to EU regulations, there are special rules for vessels traveling to outermost regions.

Until 31 December 2030, shipping companies must not surrender allowances for emissions released from voyages between a port located in an outermost region of an EU Member State and a port located in the same EU Member State (e.g. Lanzarote (Spanish Region)-Valencia (Spain)), including voyages between ports within an outermost region (e.g. Lanzarote (Spanish Region)-Fuerteventura (Spanish Region)) and voyages between ports in the outermost regions of the same EU Member State (Guadeloupe(French Region) -Martinique (French Region)). These exemptions include emissions within these ports in relation to such voyages.

Source:

The EU has nine outermost regions (ORs):

• France: Guadeloupe, French Guiana, Martinique, Mayotte, Réunion, Saint Martin

• Spain: Canary Islands

• Portugal: Azores, Madeira

EU ETS is excluded from:

• Legs between a port located in an outermost region of an EU Member State and a port located in the same EU Member State
  Example: Lanzarote (Spanish Region) - Valencia (Spain)

• Legs between ports within an outermost region
  Example: Lanzarote (Spanish - Canary Islands) - Fuerteventura (Spanish - Canary Islands)

• Legs between ports in the outermost regions of the same EU Member State
  Example: Guadeloupe (French Region) - Martinique (Different French Region)

Ice class vessels

The system supports allowance reductions for ice class IA or IA Super vessel types in EU ETS emission calculations. With the EU ETS regulation, shipping companies may surrender 5% fewer allowances than their verified emissions from ships with ice class IA or IA Super or an equivalent ice class until 31 December 2030.

If the Vessel → Details → Ice Class is 1A or 1A Super, an Ice Class dropdown field is added to the Vessel Details tab. The 5% deduction is applied to the Total ETS Amount (MT), an Ice Class tooltip informs you of the discount in the Carbon Calculator, and the deduction carries over to the Voyage P&L.

CO2 fields in Tasks & Alerts and Report Designer

In Tasks & Alerts, you can incorporate the CO2 quantity field when adding rules.

In the Report Designer, you can incorporate CO2 fields into your reporting. The ETS emissions and cost available in the Carbon Calculator can be attributed to individual cargoes via the Per Cargo CO2 fields in the Carbon Emissions table.

Troubleshooting

Why does the Carbon Calculator reflect zero carbon expense (CO2 Cost) when Total Emissions are calculated correctly?

The result here is expected as the Estimate falls within 2023. The Carbon Calculator table has a Phase-in % column that applies a percentage for each leg of an itinerary to the Carbon Cost calculation. In the above example, this percentage is set to 0% (expected under 2023), so the Carbon expense will total 0. The Phase-in Field can be manually adjusted if you want to estimate results for different years.

For voyages into 2024, the percentage will automatically change to 40%.

For voyages into 2025, the percentage will automatically change to 70%; for voyages into 2026 and beyond, the percentage will change to 100%.

Why doesn't my Carbon Emissions Table in analytics return data?

Visit the FAQ article here: