Global commodities trading company Trafigura announced today a new commitment to purchase at least 50,000 tons of carbon dioxide removal credits by the end of 2030, joining an initiative aimed at supporting the development of the CO2 removal market and solutions.
The announcement was made during the World Economic Forum’s Annual Meeting in Davos, Switzerland, as part of an initiative from the First Movers Coalition (FMC).
FMC was launched at the COP26 climate conference, creating a coalition of companies committed to creating early markets for clean technologies addressing hard-to-abate sectors. By setting major advanced purchase commitments to be met by 2030, the coalition sends strong market signals enabling the scaling and commercialization of clean technologies including near-zero carbon steel, aluminum, shipping, trucking and aviation, as well as advanced carbon dioxide removal solutions.
Trafigura is a Founding Member of the FMC and a signatory to the FMC shipping and aluminium sector commitments.
Carbon removal is emerging as a key tool in the fight to address climate change, although most technologies and solutions to capture and store carbon from the atmosphere remain at fairly early stages. According to the landmark IPCC climate change mitigation study released last year, scenarios that limit warming to 1.5°C include carbon dioxide removal (CDR) methods scaling to billions of tons of removal annually over the coming decades.
Companies joining the FMC’s carbon removal commitment agree to contract for at least 50,000 tons, or at least $25 million of durable and scalable net carbon dioxide removal to be achieved by the end of 2030. Criteria for the removals include solutions that can store captured carbon for a minimum of 1,000 years, and solutions that have the potential to scale to at least megaton scale by 2030 and gigaton scale by 2050.
Trafigura Chairman and CEO Jeremy Weir said:
“In making our third commitment to the First Movers Coalition and its aims, we are pleased to join other leading companies in sending a firm market demand signal for important technologies and fuels that are essential to achieving a low-carbon future. I’m looking forward to continuing to engage in the coalition and to fulfilling Trafigura’s shipping, aluminium and carbon dioxide removals commitments.”