Alkagesta adds EU ETS allowances to its carbon trading desk

Alkagesta has added European Union Emissions Trading System (EU ETS) allowances to its carbon trading offering, widening the range of compliance instruments the Malta-based commodity trader can supply from a single desk.

The company said the EU ETS is directly relevant to its business because the scheme reaches well beyond the European Union itself, capturing any company that deals with or operates in the territory. That extraterritorial reach, combined with Alkagesta's own global trading footprint, was part of the appeal.

Alkagesta trades a range of products including biofuels, Brent crude, naphtha, fertilizers and jet fuel, working from hubs in Malta, Singapore, Turkey and Romania.

The EU ETS has operated since 2005 and covers a number of energy-intensive sectors. Shipping was brought into the scheme in January 2024, pulling owners and operators into an allowance market many had not previously traded directly.

"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," said Anthony Guida, biofuels trading desk lead at Alkagesta.

He added that as ETS2 brings smaller businesses into scope and RefuelEU blending requirements ramp up, a single trading partner spanning allowances, credits and physical fuel supply is becoming increasingly valuable.

The addition places Alkagesta among a growing group of physical fuel traders building compliance-instrument capability alongside their conventional barrels, as shipping and aviation buyers look to manage carbon exposure and fuel procurement together rather than through separate counterparties.

The update was first reported by Ship & Bunker.