EEX launches dry freight index showing cost of carbon

European Energy Exchange AG

12/07/2021 10:24

FRANKFURT, July 9 (Reuters) - German energy exchange EEX
 DB1Gn.DE  on Monday launched a zero carbon freight index (ZCFI)
which combines the bourse's dry freight and emission permits
prices to show operators how accounting for carbon emissions
could affect freights.
    Decarbonisation of the shipping value chain is already well
underway and will continue to be front and centre for ship
owners, charterers and financiers in the decade ahead. 
    The ZCFI comes as the European Union is due to unveil
climate legislation this week which is likely to include the
extension of the EU emissions trading system (ETS) to the
maritime sector. urn:newsml:reuters.com:*:nL5N2OC1EL urn:newsml:reuters.com:*:nL3N2OL20U
    As a consequence, the shipping industry would have to factor
in carbon costs when conducting voyages that call at EU ports.
    "By referencing the ZCFI, market participants will have a
new reference point, which they can use to calculate the cost of
their carbon exposure, thereby giving a clearer, more indicative
picture of their overall transportation cost," EEX, which is
part of Deutsche Boerse  DB1Gn.DE , said in a statement.
    Participants would be able to make more informed trading
decisions on this basis, which would help them navigate more
easily through the decarbonisation process, it said.
    The index uses the EEX Dry Freight forward freight agreement
(FFA) market's daily timecharter prices for capesize and panamax
vessels and adjusts them for the cost of carbon by drawing on
EEX EU carbon allowances futures (EUAs).
    The EEX Zero Carbon Freight Index is available via
www.eex.com,  www.eexasia.com, the Cleartech Portal, and the EEX
Group Daily Freight Market Update Report.

 (Reporting by Vera Eckert, editing by Emelia Sithole-Matarise)
 ((vera.eckert@thomsonreuters.com; +49 30 2201 33654;
@EckertVera;))