We have been active in carbon and environmental markets for 15+ years and have a complete understanding of client needs in this space. Our best-in-class trading team can work with you to develop and execute a comprehensive strategy, providing market intelligence, guidance and innovative solutions not found anywhere else in the market.
The EU Emission Trading Scheme (EU ETS) carbon market has changed dramatically in the last 2 years, in terms of EU Allowance (EUA) prices, market volatility and market participants. We have seen a tripling of prices (from €30 in 2021 to recent highs of €100 per EUA) as both fundamental and technical drivers impact the market. EU ETS operators face a significant challenge to keep up to date with EUA prices, develop a risk management strategy to manage rising compliance costs and execute trades in an increasingly volatile carbon market.
The EU has now finalised regulations to cover emissions from the maritime sector under the EU ETS from 2024. Shipping companies should understand the EU ETS carbon market and develop a strategy to manage compliance for their operations.
The UK ETS carbon market began on 19th May 2021 with auctions and the secondary market launching on the ICE exchange. Given it is a new and smaller scheme (about 10% of the size of the EU ETS), the UK ETS carbon market is still characterised by poor liquidity, which often results in significant price volatility, low traded volumes and a wide bid-offer spread for UK Allowance (UKAs) prices. UKA prices often take direction from the larger EU carbon market, while prices are also impacted by the UK electricity generation mix (wind vs gas) and the auction supply boost every 2 weeks.
We can also help you design and implement a bespoke voluntary carbon offsetting strategy aligned with your brand, industry and geography. We are actively working with many developers around the world and can provide access to a wide range of carbon removal and sustainable development project types. We source only the highest-quality carbon credits, registered under internationally recognised standards.