The EU's New Green Pricing Standard Takes Shape
Argus has launched two calculated prices that value the cost of compliance generated under the FuelEU Maritime regulation, bringing transparency to a rapidly evolving compliance market. The prices represent the cost of abating one tonne of CO2 equivalent by burning used cooking oil methyl ester (Ucome) instead of marine gasoil or very-low sulphur fuel oil. By providing a standardized metric for compliance costs, Argus aims to support shipowners and charterers in making informed decisions about emissions reductions.
- The emergence of standardized pricing for compliance under FuelEU Maritime highlights the need for greater industry collaboration and transparency in addressing greenhouse gas emissions, which will be crucial for meeting the EU's ambitious climate targets.
- As the use of sustainable fuels becomes increasingly prevalent, how will regulatory frameworks and market mechanisms like FuelEU address the complex issues surrounding the sourcing and production of these fuels?