Alkagesta Adds EU ETS Allowances to Carbon Trading Portfolio
Key Takeaways
- •Alkagesta has added EU ETS allowances to its carbon trading offering, enabling clients to manage multiple carbon obligations from a single desk.
- •The EU ETS is the world's first major carbon market and the largest by traded volume, affecting any company operating within EU territory.
- •The EU ETS was extended to cover shipping in January 2024, requiring shipping companies calling at EU ports to surrender emissions allowances.
- •ETS2, scheduled to launch in 2027, will expand emissions trading to fuels used in buildings and road transport.
- •RefuelEU Aviation sets progressively increasing mandates for sustainable aviation fuel blends at EU airports, widening the intersection of allowance trading and physical fuel supply.
Malta-based commodity trading firm Alkagesta has added European Union Emissions Trading System (EU ETS) allowances to its carbon trading offering, enabling the company to cover a broader range of carbon obligations from a single desk.
The EU ETS — the world's first major carbon market and the largest by traded volume — is relevant to Alkagesta given the scheme's reach beyond the EU and the company's global trading activities, the firm said in an emailed update on Thursday.
"The scheme's reach beyond just the European Union, affecting any company dealing with or operating in the territory, added to the appeal for Alkagesta, as a company which trades in markets and goods across the globe," the company stated.
Alkagesta trades a range of products, including biofuels, Brent crude, naphtha, fertilizers, jet fuel, and many others, operating from hubs in Malta, Singapore, Turkey, and Romania.
The EU ETS has been in place since 2005 and covers several energy-intensive sectors. The scheme was extended to shipping in January 2024, requiring shipping companies calling at EU ports to surrender allowances covering a portion of their reported emissions.
"Trading EU ETS allowances alongside our CORSIA-eligible SAF and biofuels business means we can support clients across a much wider set of carbon obligations from one desk," Anthony Guida, Biofuels Trading Desk Lead at Alkagesta, said.
"As ETS2 brings smaller businesses into scope and RefuelEU blending requirements ramp up, having a single trading partner across allowances, credits and physical fuel supply is becoming increasingly valuable, and we're well placed to support that shift," Guida added.
ETS2, scheduled to launch in 2027, will extend emissions trading to fuels used in buildings and road transport, while RefuelEU Aviation sets progressively increasing mandates for sustainable aviation fuel blends at EU airports. Both measures bring additional sectors and market participants into carbon compliance frameworks, widening the intersection between allowance trading and physical fuel supply.
