The Responsible Steamship Company has a fleet of 6 Supramax bulk carriers. We are investigating implementing a range of energy efficiency technologies and practices on one of our bulkers, the 'MV Time to Act'. These technologies include:

• a micro bubble system and specialist coatings to reduce hull resistance;
• wake ducts, propeller boss to improve propulsion efficiencies.

However, our financial modeling suggests that the cost of these initatives does not generate an acceptable return on investment.

To bridge the gap between the required expenditure for the program and an acceptable financial return, we wish to apply for Maritime Carbon Units, in line with the CO2 savings the energy efficiency initiatives will generate.

In this way, the Responsible Steamship Company can stay committed to sustainable shipping practices, whilst remaining commercially viable in a highly competitive industry.

Please advise on the next stages.

Thank you for your enquiry regarding the eligibility of your projects for Maritime Carbon Units. To assess the feasibility of the project with respect to the Maritime Carbon Unit criteria, please provide the following documentation:

1. Project Proposal Overview
This report shall illustrate all the relevant details of the proposed project, including a description of the company, the ship, the proposed technologies and anticipated fuel and carbon savings.

2. Baseline and Emissions Reductions Report
This report shall document the fuel usage and carbon footprint of MV Time to Act over the past 5 years, and the projected CO2 reductions of the proposed technologies over the next 10 years.

3. Additionality Report
This report shall demonstrate that the use of the proposed technologies sufficiently meets or exceeds the requirements of the Maritime Carbon Exchange additionality criteria.

Please find attached Project Overview, Baseline Emissions, and Additionality reports as requested.

In summary, over the past 5 years MV Time to Act has averaged 30,000 tonnes of CO2 emissions per annum. Extensive independent trials indicate that the proposed technologies will cut emissions by 50%, or 15,000 tonnes CO2 per annum.

The financial modeling detailed in the Additionality Report shows that projected financial returns will not fully fund the estimated costs of the emission reduction initiatives.

However, the estimated net revenue from the sale of Maritime Carbon Units, being 15,000 MCUs per annum, over a 10-year period at $20 net per unit, yields the required $3.0 million shortfall to make the project financially viable.

We therefore request the Maritime Carbon Exchange approve this project.

On the basis of the submitted documents, the Responsible Steamship Company has been granted provisional approval for the efficiency programs on MV Time to Act. Please now provide full documentary evidence of the commissioning of the energy efficiency technologies as described.

Once this documentation is received, assessed and approved, the Maritime Carbon Exchange will register 150,000 MCUs representing the CO2 reductions from the vessel’s efficiency program over a 10-year period.

We will establish a Registry account for the Responsible Steamship Company, credited with 135,000 MCUs. The balance 15,000 MCUs, will be held in a pending account in the Register, as a contingency buffer for any significant variations against the projected emission savings.

This will be reconciled annually, subject to the annual independent audit of the vessel’s actual emissions data.

As requested, please find attached documentary evidence covering the purchase and successful commissioning of the new emission saving technologies.

We will also provide quarterly updates of the actual data vs. forecasts.

The Maritime Carbon Exchange has accepted the installation and commission documentation for the MV Time to Act project.

We have issued two tranches of MCUs: 135,000 units have been credited to the Responsible Steamship Company’s account.

These units are available for immediate transaction. The balance 15,000 units have been put into the contingency holding account, subject to an annual audit and reconciliation vs. actual emission reductions data.

Sustainable Cruises Limited operate six cruise ships that visit Antarctica and Alaska. We are committed to educating our passengers about the impacts of climate change and preserving the environments in which we operate.

We are also highly aware that the very nature of our operations has a negative impact on the environment in the form of a carbon footprint.

Subsequently, we have instituted a company wide carbon emissions reduction program, and seek to offset the residual emissions from our operations. We have calculated our CO2 emissions for the past financial year at 135,000 tonnes.

We understand that there is a unique carbon offset now available that is derived from leading-edge efficiency programs from within the shipping industry itself. Whilst we value all efforts to reduce offset carbon emissions, such as wind farms, light globe changes, and tree planting, we consider it highly appropriate to support specific initiatives within our industry.

Therefore, we wish to purchase 135,000 MCU carbon credits that will be retired against the emissions of our cruising operations. We would like to include information about the emissions reduction technology used in the carbon abatement project in our marketing.

The Funnel Exchange is a registered broker of Maritime Carbon Units (MCUs). We notice that you have recently been awarded 135,000 MCUs, as listed in the Maritime Carbon Exchange Registry.

Our client, Sustainable Cruises Ltd seek to purchase 135,000 units. Sustainable Cruises also seeks approval for a cross-promotional strategy per attached, to further assist their environmental awareness communication.

If you wish to proceed, please transfer the 135,000 units to the Registry’s transfer holding account, with proforma assignment to The Funnel Exchange, as broker.

The units will be held by the Registry’s holding account until funds are received from the Buyer, Sustainable Cruises Ltd.

The Responsible Steamship Company kindly accepts the terms of sale as outlined by The Funnel Exchange. We have transferred 135,000 MCUs to the transfer holding account. Please remit funds to our account, details enclosed.

The Funnel Exchange is pleased to acknowledge recieving full payment for, and the transfer and retirement of, 135,000 Maritime Carbon Units.

The project from which the carbon credits were generated was a suite of emissions reductions technologies applied to the Supramax bulk carrier MV Time to Act owned by the Responsible Steamship Company.

The Maritime Carbon Units were retired against the emissions generated by Sustainable Cruises Limited. Please find attached corresponding certification from the Maritime Carbon Exchange confirming the transaction details.

For cross-promotional enquiries, please see attached contact details for the marketing divisions of the respective companies.