DEVELOPING CARBON MARKETS

Carbon management

We are focused on building global supply chains to support the growth of voluntary and regulated carbon markets.

We offer a range of products and solutions to help organisations reach their low-carbon objectives and our investments are also making a positive impact on local communities and the environment.

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BESPOKE SOLUTIONS

We understand that every organisation has unique requirements

We provide companies with a comprehensive range of carbon products tailored to their climate strategies and sustainability goals.

 

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CARBON MARKETS

Our work across carbon markets

Voluntary and regulated carbon credit markets are essential to achieving global climate goals. Trafigura is supporting the development of these markets and is also investing in nature-based removals projects to produce high quality carbon credits.

 

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Project development

We specialise in large scale nature-based removals projects for both regulated and voluntary carbon markets, which are overseen by our in-house technical team from inception all the way through to the issuance of carbon credits.

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Voluntary carbon markets

Trafigura is active in global voluntary markets and supplies credits certified by registration systems including Gold Standard, Verra, American Carbon Registry and Climate Action Reserve. We work with clients to deliver carbon credits to meet their requirements and specifications in terms of registry, type, vintage and origin. We provide credits either as part of a bundled carbon offering or on a standalone basis.

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Compliance carbon markets

Regulated or compliance carbon markets continue to grow in number and scope, bringing new challenges and opportunities. The expansion of the EU Emissions Trading Scheme to cover shipping from 2024 and the introduction of the EU carbon border adjustment mechanism (CBAM) are examples of regulations that extend compliance carbon markets to new industrial sectors to incentivise reductions in emissions.

We are active in global regulated carbon markets with the ability to supply to obligated parties competitively on a spot or long-term basis. We can also help our clients manage risk and volatility.

CARBON REMOVALS PROJECT DEVELOPMENT

Our approach to investing in carbon projects

As more companies target ambitious emissions reductions and net zero targets or are subject to climate regulations, demand for high quality carbon credits is increasing, particularly from projects that sustainably remove greenhouse gas emissions. We are investing in carbon removal projects that benefit from scale, and  strong governance.

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CASE STUDY

Brújula Verde, Colombia

Landscape restoration on degraded lands in Colombia.

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CASE STUDY

Delta Blue, Pakistan

Our investment in the world’s largest mangrove forest restoration project.

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CASE STUDY

Agora supply chain emissions platform

A secure, independent platform which integrates commodity supply chain emissions data from primary and secondary sources.

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INSIGHTS

Why is carbon pricing important?

Carbon pricing has a key role to play in driving the transformation needed to meet the goals of the Paris Agreement on Climate Change. Putting a price on carbon will change behaviour and stimulate the investment required to reduce emissions.

 

In an insight paper entitled ‘The creation of a global carbon market‘ for the Oxford Institute of Energy Studies, Hannah Hauman, Trafigura’s Global Head of Carbon, argues a one-size-fits-all pricing mechanism is not possible and that diversity is needed if the carbon market is to reach its promised potential.

 

That’s because carbon reduction or removal solutions have different costs, timescales, volume potential and appeal to different types of buyers.

 

There are continued calls from carbon pricing advocates for a ‘global carbon price’. While this is admirable from the perspective of encouraging global cooperation and investment towards energy transition, this oversimplification of a complex asset class would not deliver the impact and diversified capital investments that are required,” the insight paper says.

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4 Mar 2022 - Publication

Trafigura’s standard terms of business for emissions services and trading
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Get in touch to find out more

You may also be interested in

Explore our publications and get
the latest news and insights.

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1PointFive and Trafigura announce Direct Air Capture carbon removal credit agreement
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2023 Annual Results show a strong performance in constantly shifting markets
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The creation of a global carbon market: A taxonomy of carbon pricing under Article 6
The creation of a global carbon market: A taxonomy of carbon pricing under Article 6
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by Hannah Hauman

Global Head of Carbon Trading

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Supply chain carbon emissions platform Agora is announced for the energy sector during APPEC 2023 in Singapore with first users bp, Ecopetrol and Trafigura
Seeking scale: The role of physical commodity markets in delivering carbon removals
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by Hannah Hauman

Global Head of Carbon Trading

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Trafigura announces carbon removal commitment as part of the First Movers Coalition