Trafigura Launches $500 Million Funding Platform For Low-carbon Aluminium

Although energy-intensive, aluminium is vital for the transition to a low-carbon economy, including in the auto sector where it is valued for being lighter than steel and infinitely recyclable.

Trafigura’s move is part of a growing trend among major energy and commodity traders such as Vitol or Hartree Partners to adapt their business models to the energy transition.

“Our objectives are to secure long-term low-carbon aluminium supply for our customers, to support the efforts of our business partners as they invest in decarbonisation and ultimately to create efficient linkages between suppliers and end-users,” said Philippe Muller, Global Head of Aluminium and Alumina Trading, Trafigura.

The London Metal Exchange, the global bourse for industrial metals including aluminium, has plans for a spot trading platform for low-carbon aluminium and a register where producers can voluntarily log their metal’s carbon-related details.