Marketing Communication

How strategic buying can help shipping companies avoid a compliance headache.

In less than a year, shipping companies will need to surrender enough European Union Allowances (EUAs) to cover their emissions for the 2024 reporting period.

With this date fast approaching, waiting until the September 2025 deadline to purchase EUAs could be costly. Many forward-thinking shipowners have been choosing a proactive approach by buying allowances immediately post-voyage in 2024 and will continue to do so in early 2025.

Why Adopt a Buy-As-You-Go Strategy for EUAs?

A buy-as-you-go approach to purchasing EUAs offers businesses a practical and efficient way to manage their carbon compliance obligations. This strategy is particularly beneficial for organisations looking to balance cost, stability, and regulatory compliance in a dynamic market environment.

One of the main advantages of this approach is improved budget management. Rather than waiting until deadlines to make potentially large payments, businesses can spread the cost of EUAs over time, by factoring in the cost of EUAs into freight prices on an ongoing basis and purchasing EUAs accordingly. This allows for greater financial flexibility and helps avoid the strain of lump-sum purchases at the last minute.

Additionally, a buy-as-you-go strategy can help mitigate the effects of price volatility in the EUA market. By purchasing allowances incrementally, companies can reduce their exposure to sudden price fluctuations, creating a more stable and predictable financial framework.

Finally, this approach ensures businesses stay ahead in meeting compliance requirements. Regularly purchasing allowances helps to avoid the risk of falling short, ensuring companies can meet their obligations and steer clear of fines or sanctions.

By adopting a buy-as-you-go strategy, businesses can take a proactive, balanced approach to managing their carbon responsibilities while maintaining financial control and operational peace of mind.

Simplifying EUA Procurement 

Navigating the complexities of EUA procurement and compliance obligations can be challenging, which is why Integr8 offers a specialised team to support shipowners with the task. By leveraging the expertise of seasoned traders, Integr8’s Carbon Desk provides a flexible service tailored to meet the needs of businesses of all sizes.

One of the key advantages of the service is its accessibility (subject to confirmations of eligibility on a case-by-case basis). There are no minimum purchase requirements, meaning traders can start with as few as one EUA. This flexibility allows businesses to engage with the market on their own terms, whether they are looking to make small-scale purchases or explore larger opportunities over time.

Integr8 also eliminates upfront costs by forgoing commitment fees, making it easy for eligible companies to begin trading without financial barriers. The onboarding process is simple and efficient, with a straightforward KYC (Know Your Customer) process that ensures quick setup and minimal disruption.

All transactions are conducted in USD, helping to reduce foreign exchange risks and provide greater financial clarity. This approach is particularly beneficial for eligible businesses seeking to minimise complexities when managing their carbon compliance obligations.

By providing a seamless and accessible platform, Integr8’s Carbon Desk allows eligible businesses to streamline their EUA procurement and focus on achieving their environmental and compliance goals with confidence.

To request a free 30-minute consultation or to receive a brochure, email carbon@integr8fuels.com or contact your trading representative.

Media Contact:

Angela Freeth, angela.f@integr8fuels.com