Commodities giant Trafigura Group is launching a carbon trading desk.
After five years with Trafigura, most recently as head of crude oil for Europe, Hannah Hauman has been appointed global head of carbon trading. She will lead a dedicated team based in Geneva, Houston and Singapore, with plans to recruit a number of additional roles.
“Regulated and voluntary carbon offset markets will have an important role to play in the progression towards a carbon neutral world for industries with emissions that cannot otherwise be eliminated or reduced through investment and operational optimisation. Carbon offset markets provide the means for price discovery to drive the reduction of greenhouse gas emissions in existing supply chains and to encourage investment in carbon sequestration measures and technologies,” Trafigura stated in a release today.
Trafigura said its entry into this market will bring increased liquidity by connecting producers of offsets to its global network of oil, metals and minerals customers including producers and end users.
In December last year, France’s Barry Rogliano Salles (BRS) became the first shipbroker to offer emissions consulting services and carbon credits brokerage.
Shipowners looking at carbon credits have increased in recent months. Two famous Hong Kong shipping lines, Wah Kwong and Pacific Basin, have both debuted carbon credit schemes as have large containerlines such as MSC and CMA CGM while the new boss of Mitsui OSK Lines this month said Japan’s largest shipping line will likely push ahead with carbon credits.
Trafigura has been one of the most vocal backers of a carbon levy for shipping in the past year, calling for a market-based measure that would charge a levy on carbon-intensive shipping fuels and subsidise low- and zero-carbon fuels.
Trafigura has submitted a proposal to the International Maritime Organization for a what it describes as a partial “feebate” system to decarbonise global shipping.
Trafigura analysis suggests that the levy should be between $250-$300 per tonne of CO2-equivalent.
Last month Woodside and its Pluto LNG joint venture participants Kansai Electric Power and Tokyo Gas delivered their first cargo of carbon offset condensate to Trafigura. The cargo was loaded at Pluto LNG in Western Australia.
The carbon dioxide equivalent emissions associated with extraction, storage and shipping of the 650,000 barrel cargo has been offset through a combination of efficiency measures and the use of carbon offsets.
Woodside and Trafigura have also signed a non-binding memorandum of understanding to explore opportunities for carbon management in the marketing of carbon offset condensate, crude oil and liquefied petroleum gas in the future.