Newsletter
Market turmoil in European energy markets last year continues to have an impact on the hedging activities of many of the continents utilities, with some putting their hedging activities on ice as market liquidity evaporated and margin calls soared. The question now is whether or not utilities are done and
Newsletter
Carbon markets are just the start of a revolution putting a price on natural capital
Newsletter
The collapse of three mid-tier American banks in quick succession, followed by a hastily arranged weekend rescue deal of one of Switzerland’s “systemically important banks” may have some carbon market investors nervously suffering from déjà vu given the obvious parallels with events 15 years earlier. March 2008: Bear Stearns
Newsletter
A market based approach to pricing carbon is founded on the most basic of economics problems – scarcity. The science of climate change makes the case that there is a limit to how much additional carbon dioxide can be pumped into the atmosphere before we hit certain thresholds associated with global
Newsletter
The ‘sailing ship’ effect – also known as the ‘last gasp effect of obsolescent technologies’ - occurs where competition from new technologies stimulates improvements in incumbent technologies and the firms that produce them. For example, the advent of steam power inspired the makers of sailing ships to innovate, transforming the structure
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A recent shipment of ‘carbon neutral’ LNG between Australia and Taiwan is the first of its kind to be delivered under a new framework supposed to give greater clarity over its origin. The stakes could not be higher. The continued growth in LNG over the next couple of decades hinges
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High premium to other North American carbon markets will increase calls to link up with California
Newsletter
As Europe gradually moves towards net zero, opportunities to cut emissions even further are likely to become significantly more challenging. Rather than cut emissions, another option for heavy emitters is to capture their carbon emissions at source, before they enter the atmosphere, and then permanently sequester the carbon. As this
Newsletter
What does the carbon futures curve tell us and why is it important?
Newsletter
The European airline industry is about to become much more exposed to developments in the EU carbon price. Up until now airlines have been cushioned from the full impact of meeting compliance; policymakers wary of ‘carbon leakage’, global disagreements over the cost, and state support for national champions have all
Newsletter
European chemicals behemoth BASF is one of Germany’s largest consumers of natural gas and has been particularly hard hit by the surge in energy prices following Russia’s invasion of Ukraine. In September 2022 the company announced that it was going to introduce a €500 million annual cost saving
Newsletter
What lessons can we learn from the first cap-and-trade system?