ETS Levy
   

Emissions Trading Scheme and Levy

From 1 July, 2010, Pacifica Shipping added an ETS Levy to its freight rates to cover the cost of the Emissions Trading Scheme (ETS) imposed on domestic transport operators. It is important to note the Levy is applied in accordance with New Zealand statutory provisions of the ETS, details of which are at:

http://www.climatechange.govt.nz/emissions-trading-scheme/about/basics.html

For the current transition phase of 1 July 2010 to 31 December 2012, the New Zealand Government has capped the Carbon Credit unit price at $25. This amount is multiplied by CO2 emission factors set by the Government for users of marine heavy fuel and diesel. The currrent factor rates can be seen at:

http://ww.legislation.govt.nz/regulation/public/2008/0356/latest/DLM1635640.html

Using the capped $25 rate for example, Pacifica’s obligations would be calculated as follows:

Fuel Type    Carbon Credit Cost   CO2 Emissions   Obligation per MT

                       (Per MT)                     Factor                 (Less 50%)

Diesel                 $25.00                      2.670                     $33.38

HFO Fuel Oil        $25.00                      3.015                     $37.69

Pacifica has calculated its ETS Levy by multiplying actual fuel tonnage usage by the ETS obligations per tonne as above, then dividing by the number of TEUs moved. 

Currently the ETS Levy added by Pacifica is $6 per TEU (Twenty-foot Equivalent Unit), based on the $25 New Zealand unit price. This figure may change, depending on the value of Carbon Credits traded on the international market and on any future Government decisions on fixing unit prices. 

Until the end of 2012 one emission unit will pay for every two tonnes of greenhouse gas emitted. After this, the ratio will be one for one, with units traded on the international carbon market. 

Our fuel supplier is purchasing Carbon Credits through the European Climate Exchange and uses the ECX CER Daily Futures Contracts Spot rate, which can be found online at http://www.eea.europa.eu/

If you have any enquiries about the ETS Levy, please contact Pacifica for more information.

If you require further information or a quote from us, please complete our quotation request form.


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