Alkagesta Expands Carbon Trading Offer to Include EU ETS Allowances

Malta-based commodity trading company Alkagesta has announced the inclusion of EU Emissions Trading System (EU ETS) allowances within its carbon trading portfolio. This development, which was first reported by Ship & Bunker, Ship.energy, and Bioenergy International, signifies an expansion of the company's offerings in the carbon markets sector, according to a recent update from Alkagesta.

The EU ETS, established in 2005, saw its scope extended to cover shipping operations from January 2024. Alkagesta's decision to integrate these allowances reflects the scheme's expanding influence beyond the European Union, a factor relevant to the company's international activities across energy, fuels, fertilisers, and other commodity markets.

Expanding Carbon Market Services

Industry media coverage highlighted that Alkagesta's new offering will also encompass the expanded ETS2, which is scheduled for implementation in 2028. This expansion is designed to bring a broader range of entities into the carbon pricing mechanism, including smaller businesses.

Anthony Guida, Biofuels Trading Desk Lead at Alkagesta, commented on the strategic importance of this development, stating, “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.” He further emphasised the growing demand for an integrated trading partner as ETS2 expands and ReFuelEU blending mandates increase, suggesting that having a single point of contact for allowances, credits, and physical fuel supply is becoming increasingly valuable.

Strategic Alignment with Market Evolution

The move by Alkagesta positions the firm to address the evolving compliance and sustainability needs of its client base. With the EU ETS now covering maritime transport, companies involved in shipping and related logistics face new carbon obligations. By offering EU ETS allowances, Alkagesta aims to provide a more comprehensive solution for clients navigating these complex market dynamics.

This expansion is particularly pertinent given the anticipated ramp-up of ReFuelEU blending requirements, which will mandate increased usage of sustainable aviation fuels (SAF) and biofuels. By combining carbon allowance trading with its existing biofuels business, Alkagesta seeks to create a synergistic offering that supports clients in meeting various environmental targets and regulatory requirements across the energy and maritime sectors.

Source: Alkagesta