Credit Agricole shifts from precious metals to carbon markets

Credit Agricole, France’s second-largest listed bank, will transition from trading in precious metals to focusing on the EU Emissions Trading System (ETS) starting in 2025, according to sources familiar with the matter.

The bank is winding down its precious metals business, managing existing risks, and letting positions roll off in favour of entering the carbon markets.

This strategic shift aligns with Credit Agricole’s commitment to its green goals. The EU ETS, the world’s largest carbon market, represented 87 per cent of the global carbon market’s record value of €881 billion ($949 billion) in 2023, according to LSEG analysts.

Credit Agricole’s decision reflects growing interest among European banks in the lucrative carbon trading sector.

While the bank’s precious metals business was relatively small compared to industry giants, it had faced challenges, including significant volatility during the pandemic, which led to a strategic exit from the market.

The move is set to bolster the bank’s revenue streams by leveraging the burgeoning carbon market, aligning with broader environmental and financial objectives.