Trafigura CEO Jeremy Weir calls out market fragmentation as biggest challenge facing energy transition

In the third episode of Fastmarkets critical minerals podcast Fast Forward, Trafigura CEO Jeremy Weir tells host Andrea Hotter why the current geopolitical environment means that the energy transition won’t be a smooth ride for commodity traders

This episode goes live on June 25; find it wherever you get your podcasts.

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In a wide-ranging 30-minute conversation, Jeremy Weir, executive chairman and CEO of Trafigura, and Andrea Hotter, Fastmarkets special correspondent, discuss some of the major challenges commodity traders of all sizes are facing, including:

1. Fragmented supply chains (and regulations)

“The fragmentation that we see in certain marketplaces is inflationary because the cost of moving the material is becoming more expensive. It’s not as streamlined as it used to be,” Weir says.

Weir underscores the time, effort and capital required to adapt to changing trade dynamics, urging regulators and governments to appreciate the interconnectedness of global markets.

2. Fragmented carbon markets

“We’re not going to get any green premiums until we have actually a defined carbon price,” Weir says.
Addressing the fragmented nature of global carbon markets, Weir stresses the need to establish consistent carbon pricing. This, he argues, is crucial in the drive to develop green premiums and facilitate sustainable practices. But he isn’t optimistic: “We haven’t got a consistent carbon price around the world. And, quite frankly, I think it’s going to be very, very difficult to get there.”

3. Global infrastructure not fit for purpose

Weir predicts that a lack of sustainable power infrastructure and the energy storage systems it relies on will hold back the energy transition. The availability of raw materials, technology and capital will cause the transition to “go in fits and starts” and prolong the world’s reliance on fossil fuels.

Weir also shares how Trafigura is preparing for the energy transition, questions the viability of base metals smelting capacity outside of China, and much more. Subscribe to Fast Forward to get the episode as soon as it drops.

About Jeremy Weir

Jeremy Weir became Executive Chairman and Chief Executive Officer of Trafigura in April 2018. This follows his appointment as CEO in March 2014 after a career spanning nearly three decades in commodity and commodity derivative markets. Learn more about Jeremy and Trafigura.

Subscribe to Fast Forward, your definitive podcast for the critical minerals and battery raw materials markets. Each episode, we’re diving headfirst into the latest trends, market buzz and game-changing technologies that are shaking up this ever-changing landscape.

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