Carbon pricing: Navigating the risks and opportunities of energy transition policy
Prices in the EU Emissions Trading System (EU ETS), currently the world’s most liquid carbon market, hit an all-time high in early 2021 of around 10 times above levels from just a few years ago.
Increasingly stringent climate policy will pose risks and opportunities related to carbon pricing for investors and for compliance market participants — ranging from oil refiners to chemical producers to power generators to airlines and many more.
The EU is set to publish a suite of legislative proposals to implement the Green Deal and review the market stability reserve (MSR), a mechanism that adjusts carbon permit supply. Both of these actions should add bullish sentiment to the market.
Companies and sectors face a host of risks and opportunities in this policy-driven and volatile market. It has become ever more important to keep on top of carbon policy as the energy transition takes centre stage.
Emissions Market Outlook
In this video, Head of Global Gas and Carbon, Trevor Sikorski offers his insights on the EU emissions allowance (EUA) market, including the rationale for why prices could more than double before 2030.
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About Trevor Sikorski
Trevor Sikorski has been analysing European energy and environmental markets for more than 15 years. Having held senior analytical research roles with Barclays Capital, Point Carbon, Global Insight and PwC, he has an in-depth understanding of the global markets for generation fuels and carbon, including their fundamentals, trading behaviours, and complex interactions.
In 2010, Trevor was named the top carbon market analyst by Environmental Finance magazine and was in Commodity Magazine’s commodities research team of the year in 2011. Trevor is frequently featured in leading media outlets, including the Financial Times, BBC News, Reuters, Bloomberg, CNBC, Wall Street Journal, and Sky News.
