Bloomberg writes: "Trafigura Positions for ‘Huge’ Growth in Market for CO2 Credits"

https://www.bloomberg.com/news/articles/2025-09-30/traders-in-co2-credits-are-positioning-for-a-huge-growth-wave

Traders and major commodity firms are positioning themselves for a dramatic upswing in the carbon credit market, betting that demand and regulation will drive significant growth. In the first half of 2025 alone, companies retired more carbon credits than ever recorded, and about $10 billion was publicly committed toward credit generation—more than triple the same period a year earlier. Once tarnished by greenwashing scandals, carbon markets are quietly staging a comeback, spurred by renewed investor confidence and expectations of deeper regulatory mandates.

A core part of the narrative centers on Trafigura, a global commodities trader, which is actively investing in carbon-related assets and market infrastructure. The company is scaling up its carbon trading desk and project development pipeline, aiming to turn carbon credits into an “investment-grade” asset class rather than a speculative tool. Traders like Trafigura are viewed as critical intermediaries: they help absorb verification, credit-quality, and delivery risk for corporate end users who may lack the capacity to evaluate offset projects themselves.

At the same time, the article cautions that the projected growth is not without challenges. Ensuring the integrity, permanence, and governance of carbon credits remains a key hurdle, as past cases of overvaluation and weak oversight have tarnished market trust. And while firms expect regulation to broaden and solidify demand, much depends on the evolution of global climate policy frameworks and the ability of projects—especially in emerging markets—to deliver verifiable emissions reductions over time.