Veson Nautical launches EU ETS contract management solution

Veson Nautical launches EU ETS contract management solution

Veson Nautical (Veson) has introduced its Emission Expense Settlement Workflow, which enhances its European Union Emissions Trading Scheme (EU ETS) contract administration solutions for individual trips within the EU.

Veson’s IMOS platform offers users a digital commercial management solution for assessing the business feasibility of each contract based on carbon exposure and costs, as well as settling emission expenditures based on contract conditions.

With Veson’s latest EU ETS product release, where users may now track the payment of emissions expenditures using cash, EU Allowances, or a mix of the two for each charter party. This follows the polluter-pays principle, with the party steering the vessel into the EU covering the cost of emissions.

READ: Veson Nautical plans VesselValue buyout

Over a two-year period, the solution was developed in close collaboration with charterers, commodities dealers, owners, and operators. It is based on Veson’s real-time carbon calculator for emissions subject to the EU ETS.

It is also reportedly used in conjunction with Veson’s Trading and Risk module, which allows clients to estimate the possible cost of a single journey, including the equivalent carbon price for market permits.

According to Veson, users of the revised IMOS platform may utilise this information to take strategic actions such as issuing the appropriate number of allowances to cover emissions, managing their EU ETS allowances, and hedging against allowance price swings.

Based on fixed contracts and their hedging strategy, Veson noted that its clients may see their risk position in any market, at any time.

READ: EU ETS: What we know so far

Bobby Morse, Group Product Manager, said: “We are excited to launch a product that provides critical support for all clients who do business within the EU.

“At Veson Nautical, we’re focused on product development which delivers clear ROI and benefits to the users. We’re thankful to our clients and the maritime community for their valuable input and support in developing this tool.”

Josh Luby, Group Product Manager, stated: “Veson’s goal was to deliver a baseline solution to support our clients across all sectors that are impacted by this new regulation. We are confident that we have completed that task.

“That being said, we know that there is still more to be done and we know that the industry continues to evolve how they will handle some of the more nuanced elements of the regulation. We will continue to work with our clients, and the industry, and are committed to deliver additional functionalities to help support them throughout 2024 and beyond.”

In October, Sea-Intelligence reported that carriers are prohibited by law from agreeing on a standard carbon surcharge formula, which would result in carrier misalignment.

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