Trafigura Group, a global leader in commodities trading, is making a bold bet on the recovery of the carbon credits market. Despite its recent struggles, the company views emerging regulatory frameworks and international agreements as pivotal for mainstreaming carbon credits in emissions accounting.
With new policies creating clearer pathways for businesses to meet climate targets, Trafigura expects a surge in demand for record growth.
The Carbon Market Makeover: Regulations Reshape Voluntary Credits
The voluntary carbon market (VCM) allows companies and individuals to buy carbon credits to offset emissions voluntarily, rather than as part of regulatory compliance. These credits fund projects that reduce or avoid greenhouse gas emissions, such as renewable energy, reforestation, or community-based initiatives.
Unlike mandatory carbon markets governed by laws, VCM operates through independent standards and registries, providing flexibility for participants. As the VCM evolves, efforts to enhance quality and credibility are shaping its role in global climate action.
Hannah Hauman, Trafigura’s global head of carbon trading, highlighted the impact of increased regulations in Europe, the US, and Asia. These frameworks are designed to help companies achieve net-zero emissions, reinforcing the importance of a robust carbon credits market.
- RELATED: EU Regulations Poised to Catalyze Global Carbon Market Convergence, Says Trafigura’s Hauman
At the recent COP29 summit in Baku, negotiators finalized rules under Articles 6.2 and 6.4 of the Paris Agreement, laying the groundwork for a global carbon trading system.
Article 6.4 introduces a UN-backed mechanism with standardized guidelines for carbon credit quality. It offers a more transparent and structured approach. In contrast, Article 6.2 allows countries to set their own criteria for carbon credit exchanges, which some critics fear could weaken the market.
Danny Cullenward, senior fellow at the Kleinman Center for Energy Policy, warned that Article 6.2 could create an “anything goes” market. This can potentially undermine both Article 6.4 and broader climate efforts.
Industry Challenges and Corporate Retreats
The voluntary carbon market has faced criticism over greenwashing and the issuance of low-quality credits. In 2023, the market’s value dropped by 23% as shown in the graph below. This declining trend started in 2021 when critics began to shake the market. Moreover, key players like HSBC Holdings, Shell Plc, Delta Air Lines, Google, and EasyJet have scaled back their involvement.

Just recently, HSBC abandoned plans to build a carbon credits trading desk, while Shell began selling off a majority stake in its nature-based credit portfolio.
Despite these challenges, regulatory advancements have led to optimism. Hauman remarked that countries now have a “regulatory line of sight” to guide them through 2030, providing clarity for companies on expectations, investment strategies, and emissions reductions.
According to BloombergNEF’s data, Europe is leading the UN-backed carbon credit investment while Ghana gets the most funding for Article 6 projects.

Trafigura’s Sustainability Strategy: Restoring Forests, Reviving Markets
Trafigura is capitalizing on this evolving landscape. As the world’s largest trader of carbon-removal credits, the company is expanding its portfolio to meet rising demand.
In November 2024, Trafigura announced a $500 million investment in a carbon credits project to restore Africa’s Miombo woodlands. The project aligns with Article 6.4 guidelines, emphasizing quality and environmental impact.
In the same month, the giant commodity trader, alongside Temasek-owned GenZero, has pledged $100 million to Colombia’s largest nature-based carbon removal project. The project seeks to restore degraded land in the South American nation while generating carbon credits.
- SEE MORE: Colombia’s Largest Carbon Project Secures $100M Backing from Temasek-Owned GenZero and Trafigura
Hauman noted that carbon credits are evolving from experimental tools to investment-grade assets, thanks to regulatory shifts. This transformation is expected to enable companies to incorporate credits into their long-term sustainability strategies confidently.
The company itself is pursuing ambitious carbon reduction goals, aiming to:
- cut Scope 1 and 2 emissions by 50% by 2032, and
- achieve net zero by 2050.

In addition to reducing its direct emissions, Trafigura is focused on lowering Scope 3 emissions intensity. This includes the impact of its traded products. To accelerate its energy transition, the company does these measures:
- Invest heavily in renewable energy, including solar and wind projects.
- Develop low-carbon fuels like green hydrogen and ammonia.
- Launched a $2 billion fund in 2023 to support energy transition projects.
The fund is also for advancing its emissions trading activities, helping clients offset their carbon footprints with high-quality carbon credits.
A New Era of Investment-Grade Carbon Assets
While the carbon market faces hurdles such as inconsistent legal definitions and price volatility, companies like Trafigura, Cummins, Bosch, Daimler, Toyota, and Volvo see potential for growth. Regulators across regions recognize the role of carbon credits, especially removal-based units, in helping businesses achieve net-zero emissions by mid-century.
COP29 also marked a turning point for reforestation and afforestation projects under the UN’s Clean Development Mechanism (CDM). These projects, previously stalled, have been transferred to the revamped Article 6.4 framework, benefiting countries like India and Colombia, which host 27 eligible projects.
The carbon market is moving away from being policy-driven to becoming a dynamic investment arena. Trafigura’s strategic partnerships and investments position it to lead this transition. The company aims to drive both market growth and meaningful climate action, by addressing regulatory requirements and maintaining high-quality standards.
As the industry adapts to new rules, Trafigura’s efforts show the shift toward a more structured and credible carbon credits market. It underscores the company’s readiness to thrive in the evolving carbon market landscape.
The post Trafigura Bets Big, $600M, on Carbon Credits Market Revival appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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