ESG & Investing
Traders in CO2 Credits Saddled With Vast Stranded-Asset Pile
- Millions of carbon credits lie dormant on traders’ accounts
- Trafigura executive says onus is on sellers to meet standards
Photographer: Issouf Sandogo/AFP
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A number of major carbon traders are finding that offsets they bought may now be valueless.
Trafigura Group, the world’s largest trader of carbon-removal credits, has suspended a consignment as it awaits the results of a probe into the forestry project behind the units. The situation has led the company to replace the offsets in a contract with a corporate client and instead keep the stranded credits on its own books.