Circular 12/24 Announcement: EUETS Consultation Summary
Family: BDTI / BCTI / BLPG On 22 February 2024 The Baltic Exchange published a circular (05/24) seeking market feedback on the future inclusion / exclusion of EU ETS costs in the daily published indices.
The consultation ran until 29 March 2024 whereupon the results of the feedback were summarised in the attached document and presented to the Baltic Index Council (BIC) with recommendations for their consideration. A summary of the Baltic recommendations are as follows; • To continue publishing the indices EXCLUDING the cost of EUAs
• To provide the panellists a standardised EUETS calculation linked to the Baltic Contribution App, showing the current EUA cost for each route in Worldscale and USD. Panellists will be issued guidance that, where they are referencing a fixture that includes the costs of EUETS in the freight, they should use the EUA cost as calculated by the Baltic to normalising their contribution to a price excluding the cost of EUAs.
• In calculating the cost of EUAs for each route The Baltic will use the weekly EUA price as assessed by Baltic Panellists on a Thursday as the EUA value and converted to USD at the prevailing exchange rate. The Baltic will publish the calculated Weekly EUA cost by each route in the documents area of balticexchange.com
• The Baltic Exchange will work to automate the contribution app so that the brokers can enter either an assessment including or excluding the cost of EUA based on the above calculation. Both values will be shown to the Panellist
• The Baltic will also work publish the calculated EUA value (WS and $/mt) for all of the affected routes alongside the Index value.
The Baltic will continue to monitor the market practice for the inclusion / exclusion of EUETS in freight
Any comments or feedback, please direct your message to balticbroker@balticexchange.com. |