WILHELMSEN Ship Management is launching a joint venture company with independent shipbroker Affinity Shipping.

The new company will aim to help shipowners and operators understand and comply with European Union Emission Trading System (EU ETS) regulations.

According to WSM, under a decision in December to include maritime shipping in EU ETS, shipowners and operators will need to acquire emission permits for 40% of their applicable emissions in 2024, increasing to 70% in 2025 and 100% in 2026 and every year thereafter.

WSM said the new company’s offering will be the first of its kind, offering a complete outsourcing service for shipping ETS management.

The company intends to integrate technical ship management and carbon allowance procurement to support shipowners, managers and operators in the “new era” of emissions compliance.

WSM and Affinity Shipping are entering the joint venture under a memorandum of understanding between the two businesses.

The new company will be based in Oslo, Norway.

WSM president and CEO Carl Schou said the initiative would ensure “full transparency” in the value chain.

“The partnership aims to provide a seamless transition into EU ETS compliance, as well as prioritising our clients’ interest by managing emission allowance in the most efficient way possible,” he said.

Affinity Shipping managing partner Richard Fulford-Smith said the new company would provide a complete emissions reporting and trading support service for shipowners and operators.

“It’s a powerful pooling of expertise that furthers our aim to assist clients in managing their financial exposure to the approaching energy transition.”

WSM is the ship management arm of the Wilhelmsen group. It claims to be one of the industry’s largest third-party ship managers.

WSM said it “brings technical management expertise to the table”, including verification of emissions reports and compliance with the existing EU monitoring, reporting and verification framework.

And Affinity Shipping plans to bring experience in the sale and purchase of carbon products, EU Allowances registry management, analysis of ETS exposure and regulated advice on emissions markets.

Affinity Shipping has offices in cities around the world, including Perth, Melbourne, Sydney and Brisbane.