.png)
Emissions from sources that are not under your direct control but are in your value chain are called Scope 3 emissions. These can occur both upstream and downstream of your own operations. It is where the bulk of your business activity takes place and where ~90% of overall emissions are generated. Therefore, addressing your Scope 3 Carbon Footprint is the only way your company can achieve its net-zero targets.
Upstream Scope 3 Services
Cat. 1: Purchased Goods and Services
Cat. 4: Transportation and Distribution
Cat. 6: Business Travel
Cat. 7: Employee Commuting
Downstream Scope 3 Services
Cat. 9: Transportation and Distribution
Within your Scope 3 emissions, upstream and downstream transportation are two categories that can be immediately reduced by using biofuels. CarbonLeap offers the ability to apply the CO2 savings of these biofuels in your value chain using insets. These biofuels are made from waste-based feedstocks and often have a positive net impact of >90% versus fossil-based fuel.
We achieve this by leveraging our exceptional network, where our partners can actively reduce Scope 1 emissions through the implementation of biofuels. These reductions can be allocated to you to reduce your Carbon Footprint as the owner of the Scope 3 reduction. This approach ensures that actionable reduction takes place in the value chain, and you are not offsetting unrelated emissions.
Hence, CarbonLeap offers the ability to make a real GHG impact by using insets for Scope 3 reduction. Our seasoned experts are dedicated to empowering your company to significantly reduce emissions throughout your value chain.
We achieve this by leveraging our exceptional network, where our partners can actively reduce Scope 1 emissions through the implementation of biofuels. These reductions can be allocated to you to reduce your Carbon Footprint as the owner of the Scope 3 reduction. This approach ensures that actionable reduction takes place in the value chain, and you are not offsetting unrelated emissions.
Hence, CarbonLeap offers the ability to make a real GHG impact by using insets for Scope 3 reduction. Our seasoned experts are dedicated to empowering your company to significantly reduce emissions throughout your value chain.
Don't get stuck behind while others make money of the energy transition!
.png)
.png)
Route
Company
Total Profit
Far East to North Europe
MAERSK
€325,000
East Asia to North Europe
Hapag-Lloyd
€204,000
North Europe to USA
CMA CGM
€139,000
Europe to NAM (USA, Canada & Mexico)
MSC
€125,000
How Shippers Make EU ETS Profits
A recent study by Transport & Environment provides an insightful analysis of windfall profits in the shipping industry.
The profits are defined as the difference between the ETS surcharges levied by shipping companies and the actual ETS costs they incur.
The study utilized real operational routes from 2023 and mapped journeys made by each ship corresponding to routes where surcharges were announced.
To determine the emissions for each journey, the researchers multiplied each ship’s average emissions per nautical mile, as derived from the EU MRV regulation, by the distance traveled. The resulting emissions were then multiplied by the ETS prices assumed by the carriers, producing the total emission costs for each journey. These costs were converted to per-container ETS costs using load factors from the 2022 MRV database.
Finally, the total emission costs were subtracted from the ETS emissions surcharge revenue. This revenue was calculated by multiplying the announced route-specific surcharges with the utilized container capacity, revealing the ETS profit margin for each journey.
Implications
The findings of the recent study have significant implications for customers of shipping companies. The study reveals that many shipping companies are imposing ETS surcharges that exceed their actual ETS costs. This results in windfall profits for the companies, as the surcharges are higher than necessary to cover their emissions costs.
For customers, this means potentially higher shipping costs without a corresponding increase in service value. The inflated surcharges can lead to increased prices for goods transported by these companies, affecting both businesses and consumers who rely on these shipping services.
By utilizing CarbonLeap’s carbon insetting, you can bypass the EU ETS fees, which require polluters to pay for their greenhouse gas emissions due to non-green lanes. With our insets we help decarbonise the shipping lane and freightyou not only achieve a lower carbon footprint but also skip the inflated surcharges. In short, with carbon insetting, you don’t just l your emissions – you 'ship' out the extra costs too.
A recent study by Transport & Environment provides an insightful analysis of windfall profits in the shipping industry.
The profits are defined as the difference between the ETS surcharges levied by shipping companies and the actual ETS costs they incur.
The study utilized real operational routes from 2023 and mapped journeys made by each ship corresponding to routes where surcharges were announced.
To determine the emissions for each journey, the researchers multiplied each ship’s average emissions per nautical mile, as derived from the EU MRV regulation, by the distance traveled. The resulting emissions were then multiplied by the ETS prices assumed by the carriers, producing the total emission costs for each journey. These costs were converted to per-container ETS costs using load factors from the 2022 MRV database.
Finally, the total emission costs were subtracted from the ETS emissions surcharge revenue. This revenue was calculated by multiplying the announced route-specific surcharges with the utilized container capacity, revealing the ETS profit margin for each journey.
Implications
The findings of the recent study have significant implications for customers of shipping companies. The study reveals that many shipping companies are imposing ETS surcharges that exceed their actual ETS costs. This results in windfall profits for the companies, as the surcharges are higher than necessary to cover their emissions costs.
For customers, this means potentially higher shipping costs without a corresponding increase in service value. The inflated surcharges can lead to increased prices for goods transported by these companies, affecting both businesses and consumers who rely on these shipping services.
By utilizing CarbonLeap’s carbon insetting, you can bypass the EU ETS fees, which require polluters to pay for their greenhouse gas emissions due to non-green lanes. With our insets we help decarbonise the shipping lane and freightyou not only achieve a lower carbon footprint but also skip the inflated surcharges. In short, with carbon insetting, you don’t just l your emissions – you 'ship' out the extra costs too.
.webp)
