Vitol, Trafigura Say Carbon Markets Will Only Pick Up After 2025

The lack of trading in the voluntary carbon market will continue next year, with activity expected to pick up only after 2025 once new standards are in place, according to Vitol SA and Trafigura Group.

“Trading wise, you really do see the liquidity pull away,” Rushan Pandya, head of carbon for Asia-Pacific at Trafigura, said at the Financial Times Commodities Asia Summit on Tuesday in Singapore.

Pandya expects volumes to pick up between 2025 and 2026, as new compliance markets and standards emerge. “In order to get people comfortable, whether it’s the banks or the buying entities, you ...