Veson Nautical (Veson), the global market leader of maritime freight management solutions, today announces the release of its Emission Expense Settlement Workflow, enhancing its EU ETS contract management solutions for individual voyages into the European Union. Veson’s IMOS platform now provides users with a comprehensive, digital commercial management solution to assess the commercial viability of each contract based on their carbon exposure and costs, and to settle their emission expenses depending on the clauses in their contracts.
The Emissions Expense Settlement Workflow is the latest EU ETS product update from Veson. Users can now track the settlement of emissions expenses using cash, EU Allowances or a combination of the two for each charter party within the IMOS platform. This follows the polluter-pays principle, where the party directing the vessel into the EU covers the cost of emissions.
Developed in close consultation with charterers, commodity traders, owners and operators over 2 years, it builds on Veson’s real time carbon calculator for emissions applicable to the EU ETS. It is also used in conjunction with Veson’s Trading and Risk module, where clients can assess the potential cost for an individual voyage, including the equivalent carbon price for the allowances in the market.
Users of the updated IMOS platform can use this information to take strategic action to issue the amount of allowances required to cover emissions, managing their EU ETS allowances and hedging against allowance price movements. Clients can see their risk position in any market, at any time, based on fixed contracts and their hedging strategy.
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 said: “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.”
With the addition of the Maritime industry into the European Union Emissions Trading Schema (EU ETS) starting the first of January 2024, any voyages that include cargo operations in an EU port will have an associated emissions expense. To best ensure that the industry follows the polluter-pays principle, where the party that is directing the vessel into the EU covers the cost of emissions, contracts are being amended to include clauses to recoup these costs.
All functionality is applicable on a contract-by-contract basis within Veson’s IMOS platform fully and integrated into the comprehensive workflows that charterers, commodity traders, owners and operators already use. Clients can add the functionality to their subscription by contacting Veson directly.
