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Trafigura: How commodities trading can help the world decarbonise

Transparency on carbon in commodity supply chains could drive emission reductions, writes Jeremy Weir, CEO and Executive Chairman of Trafigura Group.

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Jeremy Weir, Chief Executive Officer and Executive Chairman Trafigura Group, on Wednesday (16 June) published an opinion editorial ‘How commodities trading can help the world decarbonise’ in a blog post; its contents are as follows:

The race to limit global warming by reducing emissions of greenhouse gases has created new dynamics in markets of all kinds. Commodity markets may be among the most profoundly affected, but they also have a crucial role to play in the transition to a lower-carbon economy. And it is time for commodity traders to help make that happen – using market forces, risk management skills and our unique insight and expertise in managing global commodity supply chains – to reduce carbon emissions.

This may seem a surprising statement from the head of one of the world’s leading oil and metals trading firms. But we recognise that the energy transition is already having a far-reaching impact on our business and that commodity traders have an important part to play.

The core function of our industry – supplying the commodities the world needs from where they are produced to where they are needed most, as efficiently as possible – will be more important than ever in facilitating the energy transition.  Many commentators have noted the additional volatility in supply, demand and prices for oil, gas and coal created by uncertainties related to decarbonisation.  And as a recent report from the International Energy Agency and our own research make clear, the shift to a clean energy system is set to drive an exponential increase in demand for metals such as copper, aluminium, nickel and cobalt, raising concerns over the resilience of global supply chains, price volatility and uninterrupted access to energy.

Right now, another change is underway which could have just as much impact: the increasing focus on carbon emissions generated from global supply chains.  Just as the shift from hydrocarbons to electrification and renewable energy is changing the fundamentals of the commodities we will need, how those commodities are produced, processed and transported along supply chains needs to change too.

Companies of all sizes and in all sectors now report emissions and set targets for reducing them –
not just the emissions for which they are directly responsible in their operations, and from the use of the products they make – but also those generated in their upstream supply chain, from the manufacture, processing and transportation of inputs.

Trafigura is no exception: we have set targets for reducing our Scope 1 and 2 emissions – those from our own operations and from the consumption of energy in running them – and we are working to quantify and reduce upstream Scope 3 emissions for the products we trade and transport.  Our call for a global carbon levy on maritime fuels to decarbonise shipping is an important element of this work. From our daily interactions with customers, it is increasingly clear that accurate, reliable information about the carbon footprint of products and services has itself now become a vital but scarce commodity.

Reducing supply chain emissions has been identified as one of the key levers to bring about a net-zero economy. But doing so is hard: as the World Economic Forum acknowledged in a recent report, supply chains are fragmented and companies struggle to muster the data they need to manage emissions outside their control. Fortunately, the market can bring a solution to this conundrum, by enabling greater transparency about emissions as part of the trading process.

The key is to consider carbon as another specification for commodities – just as today, we deliver commodities to meet customer specifications of quality and grade. By providing a carbon value for the commodities we supply, encompassing emissions from ‘cradle’ to the customer gate, producers, traders, financiers and customers can identify opportunities to reduce carbon in global supply chains.  Opportunities that range from incentivising lower-carbon production, to choosing lower-carbon transportation, to offsetting residual emissions with credits generated from projects that remove or sustainably reduce carbon in the atmosphere.

At Trafigura we saw how this can work when we established a low-carbon aluminium trading desk two years ago and a financing facility to support it with two of our banking partners. The facility enabled us to access financing at a preferential interest rate and, in turn, to pay a premium to low-carbon aluminium producers.  And through establishing a carbon trading desk, and a Power and Renewables division, we are leveraging our skills in managing risks, providing financing and liquidity and connecting producers and buyers in rapidly growing markets that will play a fundamental role in accelerating the transition to a net zero world.

Unless supply chain emissions can be quantified to a far greater degree of accuracy, with a consistent, transparent and standardised approach, it will be a challenge to prioritise, or incentivise, the lowest carbon intensity options and to reduce ‘hot spots’ that have the greatest impact. And reducing emissions, to as close to zero as possible, must be the primary goal.

Even so, if it is widely accepted that, removing – as well as avoiding and reducing – carbon emissions from the atmosphere will be required to achieve net zero.

Carbon markets – whether regulated or voluntary – can help to channel investment from emitters into the technologies and projects needed to do this.  Trading carbon is an opportunity for our industry – to participate in high-growth markets, extend the services we offer to customers and benefit from finding and removing inefficiencies in new markets.  But it is also an opportunity to contribute to price discovery, increase liquidity and drive transparency to accelerate the flow of capital into abatement measures. In voluntary carbon markets, greater regulation, established standards and verification of projects’ claims will be pre-requisites to achieving these aims.

Providing transparency and greater accuracy of supply chain emissions across each stage of complex value chains on a global scale is a gargantuan task and one no company can hope to achieve alone.  It will require co-operation between producers, logistics providers, traders and customers across multiple industries and companies, on an unprecedented scale. Trafigura is committed to playing its full part, and believes that transparent emissions specifications paired with a liquid carbon market could offer one of the more effective ways of driving the climate transition.

 

Photo credit: Lorenzo Cafaro from Pixabay
Published: 18 June, 2021

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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