Malta-headed global commodity trading house Alkagesta Holding Co. Ltd (Alkagesta) has announced the addition of the EU Emissions Trading System (ETS) to its carbon markets offering. This will also include the expanded ETS2 when the scheme extends to fuel supplies in 2028.
Having expanded into jet fuel supplies earlier this year, with a landmark deal to use the NATO CEPS Pipeline, this addition will further the company’s trading capacity as part of its growth plans.
Under the EU Emissions Trading System (ETS), power stations, industrial installations, and maritime, shipping and aviation operators are currently required to surrender allowances based on verified emissions from the previous year.
In 2028, the launch of ETS2 will extend this obligation to include fuel suppliers, accountable for the emissions associated with fuels used in the road transport and buildings sectors, among others.
The scheme’s reach beyond 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 trades a range of products, including biofuels, Brent crude, naphtha, fertilizers, and jet fuel from hubs including Malta, Singapore, Turkey and Romania.
The move comes at a point when the ETS is undergoing renewed scrutiny for its effectiveness.
Debate over how the scheme moves forward, particularly with ETS2 on the horizon, comes amid the backdrop of concerns over European industrial competitiveness and rising energy costs.
Renewed interest in the scheme is part of why Alkagesta identified now as an opportune moment to enter the market.
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. 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, commented Anthony Guida, Biofuels Trading Desk Lead at Alkagesta.
