The London Stock Exchange Group (LSEG) announced an agreement with maritime emissions analytics company Siglar Carbon, aimed at enabling companies to evaluate lower carbon options for shipping, utilizing LSEG’s data, news, analytics and productivity tool Workspace.
According to LEG, the new collaboration comes as the EU prepares to expand the Emissions Trading System (ETS), its cap and trade carbon pricing program, to include the maritime shipping sector. The EU recently announced plans to include new sectors, including shipping, in the ETS, beginning January 2024, creating increased costs for owners, charterers and traders that fail to factor in costs of carbon emissions.
According to analysis by the companies, carbon emission costs for traders and charterers could be reduced by as much as 50% by choosing carbon-efficient ships and route planning.
Fabrice Maille, Head of Shipping & Agriculture at LSEG, said:
“When trading physical commodities, it is vital to have the right data and insights when evaluating the different options for cargo programmes to cut emissions. For traders and charterers, this could halve carbon emissions costs.
“There are already ongoing efforts to decarbonise focusing on aspects such fuels but given how quickly the ETS will come into force, planning carbon-efficient voyages is low hanging fruit logistically.”
Norway-base Siglar provides utilizes big data and analytics to provide insights to reduce CO2 emissions in the shipping industry. The new agreement will combine Siglar’s emissions insights with carbon markets and industry emissions analytics to help users understand, predict and improve the carbon footprint of commercial shipping decisions and control the related carbon cost exposure, with data enabling them to locate the most carbon-efficient shipping alternative.
Sigmund Kyvik, Siglar Carbon CEO, said:
“Our carbon solutions already play a pivotal role in driving decarbonisation in the shipping industry. Through LSEG, we can capitalise on its unique position and scale of its Workspace platform to bring our insights to a wider audience.”