Broker company FIS enters carbon market to offer 'clean' bunker fuel

Quantum Commodity Intelligence - Broker company Freight Investment Services FIS is starting a carbon office in Copenhagen to offer the shipping market carbon allowances and credits to cover the cost of emissions, the company announced Monday.

Shipping will be included in the European Union's carbon market, known as the Emissions Trading System (ETS), next January, and buy carbon allowances or credits to cover emissions that exceed an annual cap level.

The scheme is expected to apply to ships owned by companies outside of the EU that call at a European port.  

FIS will calculate how many EU ETS carbon allowances or voluntary carbon offset credits a ship owner will need to buy to cover the daily emissions from the bunker fuel used.

"With a global market of around 35 billion tonnes of carbon, Europe is looking to lead the way in emissions reductions with a target of reducing CO2 by 55% from 1990 levels by 2030," said John Banaszkiewicz, chief executive of FIS.

"We are building on FFAs (Forward Freight Agreements) to FFEs (Freight, Fuel, Emissions), we can offer clients information and contracts for compulsory and voluntary carbon credits on top of our broad range of freight and commodity contracts."