Platts to launch yearly, dynamic LNG carbon accounted Base Rates, EUA charges for assessed routes on May 19

Platts, part of S&P Global Commodity Insights, will launch yearly and dynamic LNG carbon-accounted Base Rates for 823 assessed routes involving EU ports, effective May 19, 2025.

The decision to launch LNG carbon-accounted base rates was first proposed April 7 in a subscriber note here(opens in a new tab).

The rates will be assessed in $/mt and will expand the current suite of Platts Base Rates for LNG fuel, which was launched on Oct. 16, 2023. Details can be referenced in the subscriber methodology notes here(opens in a new tab).

The new LNG carbon-accounted Base Rates will reflect all the costs of a round trip for a tanker, considering one or more loading and discharge ports.

These rates will include fuel expenses, port costs, agency fees, other well-known miscellaneous costs and EU Allowance charges.

In line with EU Directive 2023/959 of May 10, 2023, the LNG carbon-accounted Base Rates will fully reflect the costs to offset:

100% of CO2 emissions for intra-EU voyages and time spent in European Economic Area berths.

50% of CO2 emissions for all inbound and outbound voyages between the EU and non-EU member states.

0% of CO2 emissions, while the ship is in non-EU member state ports.

The yearly LNG carbon-accounted Base Rates will include an average of spot values of EUAs, from Oct. 1 of the previous year to Sept. 30 of the current year (symbol code ABQVQ00).

The dynamic LNG carbon-accounted Base Rates will include the spot value of EUA for the corresponding date (symbol code EADLP00).

Additionally, yearly and dynamic EUA charges basis LNG will be published as standalone values to represent the estimated cost of LNG carbon emissions of each assessed route.

The methodology adheres to the phased-in approach outlined by the European Parliament regarding the reporting and payment of emissions, as indicated below:

70% of emissions reported in 2025, payable in 2026.

100% of emissions reported in 2026, payable in 2027.

Please send all comments or questions to tankers@spglobal.com and pricegroup@spglobal.com.

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