Factories and energy installations with greenhouse gas emissions that are covered by the EU emissions trading scheme (EU ETS) face another five years of emissions caps. This means they face – and must manage – price risk up to at least 2012. In the light of this, a new tool to manage that risk has emerged: a swaps market between EU allowances and imported project credits.
The companies in the EU ETS face three choices in complying with their cap. They are issued an allowance for every tonne of CO
The week on Risk.net, December 2–8, 2017Receive this by email