Top Oil Traders Say Emissions Market Could Challenge Crude
- Carbon market could become 10 times bigger than oil: Trafigura
- Cost of emissions has soared nearly 60% in Europe this year
Photographer: Krisztian Bocsi/Bloomberg
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The world’s largest oil traders are gearing up to profit from buying and selling pollution permits, a market that could become bigger than crude as global leaders seek to limit the impact of climate change.
The global carbon market has the potential to be 10 times the size of crude oil trading, said Hannah Hauman, global head of carbon trading at Trafigura Group, the second-largest oil and metals trader. Hedge fund Andurand Capital LLP -- historically known for its fossil fuel bets -- expects the cost of polluting to double before some new emissions-cutting technologies kick in.