Trafigura sells first "carbon offset naphtha cargo" to Braskem

London, (Quantum Commodity Intelligence) - Commodity trader Trafigura has sold what it says is the first carbon offset naphtha cargo - offsetting emissions from so-called well-to-wheel.

Emissions from the cargo, which is loading in Corpus Christi and will be delivered to the port of Aratu in Bahia in Brazil, will be calulcated using Trafigura's own data.

The life-cycle emissions are said to cover the greenhouses gases associated with the crude oil extraction, pipeline transportation, processing at the refinery and the waterborne transportation down to Brazil.

"Emissions will be offset through a combination of efficiency measures which reduce emissions, and surrender of high-quality carbon offsets," Trafigura said in a release Monday.

Trafigura said it chartered the most energy efficient vessel available at the time of fixing and by agreeing with the ship owner that a speed reduction was made.

The offsets are to come from "nature-based" projects in Indonesia that are independently verified by the Verified Carbon Standard.

"We believe this could be an important additional step in the industry's efforts to minimise emissions," said Dmitri Croitor, Global Head of Naphtha and Condensates, Trafigura.

The Trafigura deal is the latest in a flurry of oil and refined product trades that sell offsets alongside traditional fossil-fuel based products. 

Trades of LNG and crude oil have been executed while the counterparties have retired tens of thousands of voluntary carbon credits to "green" the fuel.

However, environmental groups are critical of the process, saying that alternatives to fossil fuel need go be found instead of offsetting emissions.