LONDON, Feb. 24, 2025 — Argus, a global agency reporting on energy and commodity prices, has introduced two calculated price assessments to evaluate the cost of compliance under the FuelEU Maritime regulation.
These prices reflect the expense of reducing one tonne of CO2 equivalent by using Ucome, or used cooking oil methyl ester, instead of marine gasoil or very-low sulphur fuel oil. They offer transparency to the compliance market that has developed since the FuelEU Maritime regulation took effect in January 2025. This regulation mandates that ships in EU waters progressively decrease greenhouse gas emissions, starting with a 2% reduction in 2025 and increasing to 80% by 2050.
Shipowners and charterers surpassing the 2% GHG savings can sell the excess to other shipowners through FuelEU’s pooling system. This enables shipowners to consolidate compliance across their fleet, achieving a surplus at year-end. They can also sell excess compliance to companies not meeting the reduction targets.
In addition to pricing compliance costs, the new prices help shipowners decide whether to sell compliance, save it for later, or pay the penalty for non-compliance. Charterers can utilize the prices to assess the value of compliance generated during charter agreements, for potential sale or buy-back at the agreement’s end.
The regulation stipulates that shipowners must pay penalties if they fail to meet the reduction target or acquire sufficient surplus compliance from those who exceed it.
Argus’ new prices indicate that the cost of buying additional compliance is currently half the value of the penalties.
“We created these new compliance cost prices in response to requests from the shipping industry,” said Adrian Binks, Argus Media chairman and chief executive. “An accurate benchmark for compliance costs is essential for companies to allocate resources effectively for emissions reduction. Companies intend to use these prices in contracts, long-term planning, and investment decisions.”
The daily FuelEU Ucome-MGO abatement and FuelEU Ucome-VLSFO abatement prices are available in €/t CO2e and $/t CO2e in the Argus Biofuels and Argus Marine Fuels reports.
Argus contact information
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+44 20 7780 4200
Houston: Matt Oatway
+1 713 968 0000
+65 6496 9960
About Argus Media
Argus is a leading independent source of market intelligence for global energy and commodity markets. We deliver crucial price assessments, news, analytics, consulting, data science tools, and industry events to clarify complex and opaque commodity markets.
Based in London with 1,500 employees, Argus is an independent media organization operating from 30 offices in key commodity trading centers worldwide.
Companies, trading firms, and governments in 160 countries rely on Argus data for decision-making, analysis, risk management, trading, and long-term planning. Argus prices serve as trusted benchmarks globally for pricing transportation, commodities, and energy.
Established in 1970, Argus remains a privately held UK-registered company owned by its employees and global growth equity firm General Atlantic.
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