Commodities trader Trafigura has launched a $500-million ‘low carbon aluminium’ financing platform, which it says is a first-of-its kind for the company and the wider market.
Supported by Natixis and Rabobank, the platform will enable Trafigura to access finance at a preferential interest rate and, in turn, to pay a premium to low carbon aluminium producers
Aluminium is expected to be a major enabling material for the transition to a low carbon economy, owing to its low weight, high recyclability and wide range of applications across diverse industries including transport, packaging and consumer goods, and building and construction.
Numerous regulatory and voluntary initiatives have sought to improve the emissions and energy intensity of the aluminium production sector, but there is still no official market definition of ‘low carbon aluminium’.