Publication

Seeking scale: The role of physical commodity markets in delivering carbon removals

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Published on28 Jun 2022

Carbon removals, as an electronic certificate recorded in a registry ledger, are often oversimplified in terms of their ease of production.

 

However, behind these virtual tonnes are very real physical assets with complex operations and risks, not dissimilar to those faced in the traditional physical commodities sector. The categories and associated risks can be dizzying for even the most experienced agronomists and technologists, let alone for corporates otherwise occupied with decarbonising their core industrial businesses.

 

Consequently, traditional physical commodity players bring a unique skillset in managing physical asset risk and connecting markets: enabling solutions at scale by managing three key risk parameters and enablers: delivery, specification and financial tools.