Emissions Trading in the EU Carbon Market

Navigate the key policy changes in Phase 3 of the EU Emissions Trading Scheme and how to effectively use the carbon market to manage the risks and find opportunities

Key reasons to attend this intensive two-day programme:

  • Evaluate the financial and commercial impact of tighter carbon targets on your business

  • Learn about the regulatory and trading dynamics of the EU carbon market

  • Examine the market characteristics and price drivers to make robust trading decisions

  • Access expert guidance and advice on how to develop an effective long term trading strategy

  • Analyse  how to effectively manage compliance and find revenue opportunities

  • Benefit from unique exercises and case studies developed to illustrate the key learning points

What is the programme about?

The EU Emissions Trading Scheme (EU ETS) is currently the largest carbon trading scheme in operation and Phase 3 of the scheme (2013-2020) has introduced tougher targets for industry. According to the European Petroleum Industry Association, EU oil refiners may have a shortfall of carbon dioxide permits of about 367m through to 2020.

Navigating the EU ETS effectively to ensure compliance and produce positive results can be challenging and time consuming. This intensive two-day training programme will give you the skills and knowledge to understand the interaction between the EU ETS and the carbon market, helping your company effectively manage the risks and opportunities and allowing you to:

Build stakeholder confidence by demonstrating that your organisation is meeting its emissions targets
Minimise the risks and penalties of noncompliance by adopting a pro-active strategy

Identify revenue opportunities through the use of international credits or selling surplus allowances
Increase competitive advantage by protecting your organisation’s financial position and brand reputation

 

This course is essential for all organisations that are governed by the EU ETS including refineries, chemical producers, power generation companies, utilities, large power users:

  • Energy portfolio managers

  • Treasury, CFO’s

  • Compliance managers

  • Environment Managers

  • Traders

Day 1

MODULE 1: POLICY AND MARKET STRUCTURE

 

Carbon Trading Overview

  • How do Carbon markets work?

  • Why are they a favoured policy?

  • International Climate Discussions and the Kyoto Protocol

  • A snapshot of global carbon markets

 

The EU Emissions Trading Scheme (EU ETS)

  • Background

  • Legislative history

  • Phase 1 and Phase 2 lessons

  • Market oversupply problems

  • Fraud, theft and response

 

Group Discussion: Carbon Markets and Policy

 

Phase 3 (2013-2020)

  • Structural changes

  • Sector coverage

  • Allowance allocation

  • Auctioning

 

International Credits

  • Kyoto Project Mechanisms

  • Regulation on international credit entitlements

  • Restrictions on the use of CERs/ERUs in Phase 3

 

Monitoring and Compliance

  • The EU ETS compliance cycle

  • Benefits of regular and accurate monitoring

  • Importance to manage compliance

 

Market Infrastructure

  • The EU Registry

  • Commonly traded products – spot and forward

  • Contracts

 

CASE STUDY
Case scenario based on a real-life example following the steps and resources needed to effectively manage your compliance

 

Day 2

MODULE 2: THE EU CARBON MARKET STRUCTURE AND TRADING

 

EU Carbon Market

  • Background and history

  • Market development

  • OTC Market

  • Exchanges

  • Market Participants

  • Review of market activity

 

Market Prices

  • Characteristics of the market

  • Short and long term price drivers

  • Forward market curves

  • Analyst predictions

 

Access and Trading

  • Preparing for trading

  • Counterparty checks

  • Trading process

  • Settlement

 

Trading strategies

  • Common trading strategies

  • Price hedging

  • Different approaches

 

CASE STUDY
Participants will examine and evaluate an example trading strategy and make investment decisions to cut emissions.

 

Future Policy Outlook

  • International Policy Debate

  • Global Carbon Markets

  • EU 2030 Climate and Energy policy framework

  • National and regional markets

  • Linkage

 

Group discussion: Review learning and establish action points to embed new practice

Course Categories

Testimonials for our Courses

Delivered by

Tim Atkinson has over 12 years’ experience in environmental policy and trading in carbon markets.

Dates & Locations



This course is only available as a custom course tailored for your business, contact us to discuss your requirements.