Hedging by utilities is one of the principle drivers of carbon allowance demand, and in turn carbon market price discovery. Utilities are one of the most active participants in the EUA spot and futures markets, balancing both their current and expected future carbon risk. However, over the next few years the hedging activity of industrial emitters is likely to become a significant factor.
Hedging carbon risk
Hedging carbon risk
Hedging carbon risk
Hedging by utilities is one of the principle drivers of carbon allowance demand, and in turn carbon market price discovery. Utilities are one of the most active participants in the EUA spot and futures markets, balancing both their current and expected future carbon risk. However, over the next few years the hedging activity of industrial emitters is likely to become a significant factor.