Carbon compliance markets
Texas could face power shortages due to new EPA rule: ERCOT
Pollution rule could impact long-term ERCOT reliability and create additional costs as power plants devote resources to understanding the new system, ERCOT warns
Cutting edge: Pricing carbon-linked bonds
Within the framework of Phase II of the EU ETS, which has consecutive compliance periods that allow banking and borrowing, Daniel Bloch expresses the dynamics of Certified Emission Reductions as a function of European Union Allowances, and computes the…
Falling oil prices and Greek crisis a boon to carbon traders
Carbon allowance trading hits all-time high in June as analysts downgrade predicted average ETS Phase 3 price to €22 per tonne
California carbon scheme delay “prudent”: EDF
California's decision to delay carbon trading compliance until 2013 “will give the cap-and-trade programme it’s best chance of success”, says AB 32 co-sponsor
US carbon outlook: John Melby, GreenX
John Melby of Green Exchange (GreenX) discusses the current carbon market in the US, the potential for international links in the future and the emergence of other environmental markets such as water
Carbon 101 - the carbon market explained
While the ultimate aim of carbon trading is simple, the various trading schemes and how they fit together is fairly complex. Daniel Bloch explains the background to the major carbon trading schemes and various mechanisms currently in operation
Incentivising CDM private sector investment
The Clean Development Mechanism plays a pivotal role in emissions reduction by incentivising investment in developing nations. Much effort has been put into CDM project development, but more should be done to generate additional demand for CDM…
UK carbon floor seen raising power prices across Europe
Electricity prices could rise as the UK sets a minimum floor price for carbon
Hedge funds see potential in European carbon markets
There is growing interest by hedge funds in carbon trading. Traders are diversifying their funds and business risk by combining carbon investments with allocations to related asset classes. By David Walker
Further uncertainty for US carbon trading
Californian carbon cap-and-trade scheme suffers legal set-back on road to 2012 start date
Cutting edge technical: Carbon derivatives pricing
In carbon dioxide equilibrium models, permit prices are positive and bounded by the penalty level. To obtain closed-form solutions to the pricing of carbon dioxide derivatives, Daniel Bloch models the permit price as a function of a positive unbounded…
EC tightening of carbon spot market could threaten forward market
Industry experts are wary of European Commission proposals intended to bring additional safeguards to the spot market
US: States rethink carbon trading scheme
New Hampshire House votes to leave RGGI, New Jersey could follow; change in states’ attitudes to cap-and-trade “not surprising”
Emerging market commodity intensity set to boom, say analysts
BarCap research analysts forecast commodity intensive GDP for emerging markets for 2011, with strong growth in the base metals sector
BarCap advises carbon market to use UK registries
Barclays Capital advises clients to stick to the UK in light of recent EUA thefts across European registries
Uncertainties cloud CDM market
Asia is a primary source of offset credits for European compliance buyers, but increased risks associated with the CDM market in the region are forcing risk managers to re-examine their portfolio strategies accordingly, as Katie Holliday reports
EUA theft could severely damage carbon market, say analysts
Last month’s theft of carbon allowances was a blow to the European Union’s efforts to develop the carbon market. Katie Holliday reports on the expected extent of the damage
Global carbon market gears up for 2011 climate talks
The COP16 meeting in Cancun has been deemed a ‘technical success’ by market participants, but expectations were far lower in comparison to Copenhagen. Katie Holliday investigates
CER/ERU spread to tighten this year, say experts
On the back of Russia starting to issue ERUs, increased market liquidity will lead to tighter ERU/CER spreads, say analysts