London Metal Exchange (LME) today announced the next steps in its plans to develop the pricing of insurance premiums for sustainable metal for LME approved.
These include the start of a new HKEX team company in Dubai that will serve as a pricing manager and the publication of a discussion document on the proposed pricing methodology.
Matthew Chamberlain, LME’s chief executive, said:
“Our goal is to publish high quality prices for sustainable metals. They are supported by strong definitions and real commercial activity – which will allow our industry to unlock the possible value of sustainable metal production.
LME has announced its plans to explore the capabilities of sustainable pricing with safe metal in April 2025. The route map published today specifies more details on LME’s approach to protecting sustainable metal prices.
LME solution is based on the following basic elements:
- LME brand list -All LME brands must meet the existing LME quality and responsible supply standards, ensuring that the standards that agree on the core worldwide are integrated into all areas of LME activities. These will remain unchanged and LME will work to discover high quality prices for copper, aluminum, nickel and zinc which are both under LME brands and have enhanced viability credentials, surpassing the core agreed in worldwide.
- LMEPASSPORT slide -The LME brands are already revealing viability data on LMEPASSPORT, LME’s Digital Certificate Register-which currently holds more than 1,300 LME brands. Premium sustainability thresholds-after significant market commitment, LME has now set the thresholds of viability for each metal, incorporating both the maximum carbon footprints and third-party sustainability assurances, based on internationally recognized methodologies. These thresholds will be maintained by LME and maintained under revision.
- Trading platform – LME brand metals whose LMEPASSPORT revelations meet high quality sustainability thresholds will be eligible for trading in the Metalshub digital platform. Metalsub is a strategic partnership of LME, whose platform already allows consumers to buy low -carbon LME nickel. Since last March last year, 1,942 tonnes of low carbon nickel have been offered via the platform with 488 tonnes.
- Pricing manager – In order to produce pricing for the metal that meets the thresholds of sustainability, the recently built -in HKEX Group Company – Pricing and Analysis Limited (CPAL), located in Dubai – will act as an independent price manager. In the coming months, the CPAL will create its own activities with the aim of publishing the PREMIA, based on transparent transactions performed on Metalshub (and increasing, where necessary, with market intelligence based on the physical metal negotiation that meets the thresholds).
The discussion document, also published today, seeks views on the proposed methodologies used by the pricing administrator to identify the Premia for Metal with LME that meets the Metalsub secile threshold. The proposed primary basis for determining the pricing for each metal will be the ARM length transactions made on the metalshub. If there are inadequate transactions, then bids, bids and/or evaluations made by the pricing manager will be used. All relevant data will be revised to ensure consistency and integrity and then normalize to take into account commercial factors such as the delivery position and conventional terms.
Feedback from the discussion document will be used to finalize the methodology that the CPAL will be responsible for the implementation and information in the future.
Commenting on the launch of CPAL, Georgina Hallett, head of viability and head of the natural markets, said:
“I am excited to have made so fast progress that we are now able to announce the integration of CPAL into Dubai, a location that provides us with both agility to respond quickly to market developments and access to a rapidly growing international center.”
The CPAL was licensed by Dubai’s International Economic Center (DIFC) in September 2025.