Hecla Emissions Management\u2019s new Compliance Market Indicator (CMI), which provides a benchmark of compliance costs for shipowners and charterers rose over \u20ac50 per tonne CO2e between December and March<\/p>\n
London, 19 March 2025 – Hecla Emissions Management, a leading provider of emissions compliance management solutions to the shipping industry, today announced that its Compliance Market Indicator (CMI) has risen to an average of \u20ac470 per tonne CO2e in March, highlighting the rising costs of compliance.<\/p>\n
The Hecla CMI provides a benchmark price for FuelEU Maritime surplus, providing shipowners and charterers with a transparent reference point for charterparty settlements.<\/p>\n
Using weekly inputs reflecting real-world pricing and regulatory conditions, Hecla\u2019s CMI is a new benchmark that values the FuelEU surplus between two scenarios; the most expensive, non-compliance approach, in which operators use fuel oil in their vessels and pay full EU ETS costs and FuelEU penalties; and the lowest possible cost approach, which would be achieved by blending the exact amount of biofuel to ensure compliance while minimising EU ETS costs. While the biofuels market remains somewhat illiquid, this lowest-cost approach is unrealistic for shipowners as, hopefully, is the high-risk non-compliance approach. The CMI is therefore valued at the exact midpoint between these approaches.<\/p>\n
The increase in the CMI benchmark since the introduction of the FuelEU Maritime regulation reflects the increase in B30 biofuel costs and the widening spread between VLSFO and B30. The fluctuations in the CMI benchmark also highlight the importance of a compliance strategy that reduces exposure to short-term fuel price volatility.<\/p>\n
The Compliance Market Indicator (CMI) is a valuable reference for vessel owners and charterers as they plan their pooling strategies in 2025 and aim to understand how best to settle agreements between deficit and surplus vessels. The \u2018Hecla FuelEU Maritime Exchange\u2019 allows vessel owners and charterers to tokenise surplus created on voyages of their vessels to create assets that can be traded in a transparent and efficient marketplace to monetise surplus compliance. Having a clear benchmark for negotiations will enable shipowners to negotiate efficient and effective compliance deals that suit all parties.<\/p>\n
Hugo Wilson<\/strong> of Hecla Emissions Management, said, \u201cWe have launched our Compliance Market Indicator in response to the repeated calls for guidance from vessel owners on the fair value of surplus. It serves as a valuable and transparent reference point in what, for now, is still an embryonic market, ensuring that owners are better informed over the best compliance strategy for their vessels.<\/em> The CMI is derived from weekly inputs that reflect real-world pricing and regulatory conditions. Measures included in the calculation of the indicator include VLSFO and B30 benchmark prices and the price of EUAs, as well as FX rates, and FuelEU penalties.<\/p>\n To sign up to receive Hecla\u2019s weekly CMI Report, please visit www.hecla-em.com and contact us.<\/p>\n About Hecla <\/em> <\/p>\n","protected":false},"excerpt":{"rendered":" Hecla Emissions Management\u2019s new Compliance Market Indicator (CMI), which provides a benchmark of compliance costs […]<\/p>\n","protected":false},"author":23,"featured_media":255393,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[273,298],"tags":[],"class_list":["post-255392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritimes-news","category-seagoing-maritimes-news"],"yoast_head":"\n
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\n\u201cThe CMI shows a clear upwards trend over the first two months of 2025, despite week-to-week fluctuations. If this longer-term trend continues, there would be a clear benefit for owners of vessels facing FuelEU compliance costs to seek an early opportunity to lock in a compliance solution.<\/em>\u201d<\/p>\n
\nHecla Emissions Management AS (Hecla) is a joint venture between Wilhelmsen Ship Management and Affinity Shipping LLP, dedicated to providing expert compliance services under the EU Emissions Trading System (ETS) and FuelEU Maritime.<\/em>
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\nHecla brings together Wilhelmsen\u2019s technical and operational expertise in all aspects of ship operations, including emissions reporting and MRV compliance, with Affinity\u2019s extensive knowledge and capabilities in shipping, carbon markets and ETS exposure.<\/em>
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\nProviding emissions compliance and management solutions for over 1,200 ships across all segments and sizes, Hecla helps to navigate the significant complexities of this new era of emissions regulations, ensuring seamless compliance and optimal commercial outcomes for the EU ETS and FuelEU Maritime emissions management regimes, through its insight, analytics and trading services.<\/em><\/p>\n