The initiative will be delivered with Vertree Partners Limited (Vertree), a wholly owned subsidiary of Hartree Partners, which enables organisations to accelerate and deliver climate commitments through nature-based solutions.
The international shipping industry accounts for approximately 1 billion tonnes of greenhouse gas emissions annually1, with a trajectory that is set to see that figure rise. Shipping is also deemed by the UNFCCC - along with aviation - as facing major technological difficulties in decarbonising compared to land-based transport and industries; with new, substantially more costly low and zero carbon marine fuels the main option for the sector to transition.
The partnership with Vertree will allow Tankers International to assess and understand the carbon footprint of its pool and offer its customers a facility to compensate their unavoidable value chain emissions.
The process is not onerous. Vertree uses scientifically recognised methodologies and proprietary data to calculate an emissions baseline on a per voyage, monthly or annual basis. Customers can then choose from a range of nature-based options to compensate the carbon footprint, tailored to price, geographies and impact targets.
These range from afforestation projects in Uruguay to avoided deforestation and degradation in Cambodia. All projects promote a positive social impact, meeting multiple Sustainable Development Goals set by the United Nations (UN SDGs). To ensure the highest levels of environmental and social integrity, all Vertree projects are verified and certified by third parties, including the Verified Carbon Standard; Architecture for REDD+ Transactions; Gold Standard; and Climate, Community, and Biodiversity Standard.
Matthew Smith, Senior Vice President Commercial & Operations, Tankers International, commented: “We have been working hard to bring a climate compensation voyage programme to customers through an accurate and transparent mechanism, and are delighted to have found such a trusted, experienced and progressive partner in Vertree. The project further enhances our relationship with Hartree Partners, which joined our VLCC pool in 2019, as one of the original members of Tankers International’s dedicated scrubber fitted VLCC Pool.
"As an organisation, we recognise that the world is changing fast and the energy transition is something we need to embrace and adapt to. With the cost of fuel and the cost of using carbon only set to rise, this partnership will provide a high quality, cost effective and transparent solution to compensating currently unavoidable voyage emissions, contributing to overall efforts to reduce the environmental impact of global supply chains. While compensation is not the total solution to GHG emissions reduction in shipping, it can play an immediate and meaningful contribution to efforts to reduce cumulative emissions in the atmosphere – helping to prevent catastrophic heating while the industry pursues efforts to reduce its actual emissions.”
Ariel Perez, Managing Director at Vertree, added: “The use of carbon climate compensation is becoming increasingly important, as companies look to meet higher ESG standards from their customers, as well as meet ever tighter compliance standards. Our agreement with Tankers International allows us to support organisations that charter cargo and catalyse environmental action that’s increasingly demanded by their customers. Although within value chain emissions abatement should remain the priority, nature-based compensation is among the most scalable and effective way to reduce emissions, protect and restore biodiversity and support the United Nations’ Sustainable Development Goals.”