ZERO44 brings carbon insetting and regulatory compliance together in industry-first solution

ZERO44, a maritime emissions compliance platform, has introduced its pioneering Carbon Insetting module, marking a significant milestone in integrating regulatory compliance with carbon insetting decision-making. This innovative solution combines both aspects within a single software tool, offering a comprehensive approach to managing emissions for maritime operators.

Carbon insetting allows operators to sell the emission reductions from low-carbon fuel use directly to cargo owners seeking to reduce their Scope 3 emissions. This practice is already prevalent in the container and bulk shipping sectors. However, the primary advantage for operators lies in the ability to recoup a portion of their low-carbon fuel investment from the specific customer who benefits from it, a feat unattainable through FuelEU Maritime.

The challenge with carbon insetting lies in ensuring additionality. The emission reductions sold on the voluntary market must not simultaneously contribute to FuelEU targets. Traditionally, operators have managed this manually, using spreadsheets to track volumes reserved for insetting apart from those used for compliance. This process became increasingly complex due to daily fluctuations in prices and compliance balances across a vessel fleet.

ZERO44's Carbon Insetting module eliminates this cumbersome manual process. It is built on the same Bunker Delivery Note and Proof of Sustainability data that operators already utilize for compliance reporting. The module displays the value of every fuel volume as a surplus compared to an insetting certificate, utilizing live surplus and inset prices.

Once an operator allocates a volume to insetting, the module automatically deducts it from the vessel’s FuelEU compliance balance, ensuring that the surplus available for release is always accurate at the time of reporting.

Data from the module can be seamlessly pushed directly to the operator’s preferred registry, thereby eliminating the need for duplicate entries across systems. Friederike Hesse, Co-Founder and Managing Director at ZERO44, highlighted the solution's impact: "Every tonne of low-carbon fuel an operator purchases represents potential revenue through FuelEU surplus or through insetting, yet rarely both at the same value.

Our customers can now identify, for each bunkering event, which route yields higher returns today and act accordingly. This transformation turns a previously untapped cost into revenue previously left on the table."

The Carbon Insetting module is currently operational with a leading global operator, which manages its insetting program in collaboration with 123Carbon, an esteemed independent carbon insetting registry and a ZERO44 integration partner.