The London Metal Exchange (LME) is exploring the potential for premium prices for sustainable metals. It says that by making a sustainability price differential public, the value attached to sustainable metals will be transparent and could support the development of the market for sustainable metals.

Matthew Chamberlain, LME CEO, said: “Our conversations with stakeholders have shown that there is support for establishing a way to reflect an LME brand’s sustainability in its price. There is a growing sophistication in industry sustainability standards and accreditation programmes that cover broad criteria for different metals markets.”

He added: “The greater resilience exhibited by sustainable supply chains provides an important linkage to the global critical minerals agenda.”

The LME’s market engagement on this proposal follows on from the LME’s partnership with Metalshub, a digital platform, on an initiative launched in 2024 to develop a price discovery mechanism for low-carbon nickel.

The LME is now proposing to launch a broader series of sustainable metal premia for LME-branded aluminium, copper, nickel and zinc, incorporating a more comprehensive set of criteria than carbon footprint alone and underpinned by robust assessment processes.