World News
FuelEU Maritime Pooling Market Gradually Emerges
The pooling mechanism in the FuelEU Maritime regulation, in which overcompliant ships can trade their excess carbon reductions with undercompliant ones, is starting to form a market.
Independent carbon reduction firm CarbonLeap has reported its first deals brokered to trade excess compliance.
"The deals announced today provide pooling price, volume and compliance certainty to the deficit vessel owners, meaning they can continue operating their fleets on a business-as-usual basis across all served routes, even those where alternative fuels are limited or too expensive," CarbonLeap said in an emailed statement.
"With no concerns about swings in the price of alternative fuels and other abatement costs, the vessel owners can confidently pass compliance costs on to customers at a sustainable fixed price and volume."
FuelEU Maritime came into force at the start of this year, mandating a 2% reduction in carbon intensity from ships visiting EU ports. The most common approach to compliance with the regulation will involve using biofuel blends some of the time, but this will not always be possible for vessels operating in areas with limited biofuel availability.
"Deficit vessel owners need to move fast to secure flexibility in their pooling agreements," Guido Levie, co-founder of CarbonLeap, said in the statement.
"Flexibility will be a vital commercial and operational advantage for vessel owners if they are uncertain about exactly how much surplus they will need."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 511.00 | 3.50 | 644.00 | 3.50 |
| Rotterdam | 500.00 | 6.00 | 631.50 | 0.50 |
| Houston | 522.00 | 2.50 | 671.50 | 2.50 |
| Fujairah | 507.00 | 3.00 | 738.00 | 0.50 |
| Global 20 Ports Average | 552.00 | 1.50 | 737.50 | 8.00 |
| Global 4 Ports Average | 510.00 | 2.50 | 671.50 | 1.50 |
| Global Average Bunker Price | 598.00 | 0.50 | 787.00 | 3.50 |
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