Claims Simplified Emissions Compliance For Airlines And Fuel Suppliers

Carbon and jet fuel prices consolidated into one daily assessment is the essence of a pricing service being launched by Oil Price Information Service (OPIS) at an aviation industry conference in Singapore this week.

OPIS says it is unique in providing a price mechanism for new ETS-ready supply contracts, such as World Fuels Services’ Carbon Neutral Jet Fuel. From January 1, 2012, airlines must submit multiple emissions allowances, or related certificates, to national authorities for every tonne of jet fuel burned. Some airlines have hired staff to actively trade allowances, but many are seeking to comply with the new emissions system without raising their fixed costs. “For airlines who don’t want to actively trade carbon emissions, a clean price is perfect,” said the Environment and CSR Manager of a major Northern European airline.

The Clean Jet Assessment is included in the OPIS Europe Jet Fuel & Gasoil Report and provides the first integrated pricing mechanism for the new supply contracts. As well as clean jet prices in Rotterdam and Northwest Europe, OPIS is providing daily Emissions Allowance price levels, and forward market projections for jet fuel with carbon included at the end of the year, and in 2012.

OPIS President, Brian Crotty says, “Although it may feel like the deadlines for submitting allowances are far off, fuel managers need to think ahead, and this gives them a basis for planning and purchasing as the 2012 buying season gets into gear this Spring.”

OPIS’s Tim Lloyd Wright traveled to Singapore for the launch at the International Air Transport Association Fuel Forum. “The response has been very good so far,” he said. “The aviation manager of Europe’s largest refiner just called me to say how useful he though the assessment was – this is a really big deal for the whole industry.”

FMI: http://cleanjet.opisnet.com