Renewables are certainly the issue du jour. But, with world markets in recession, energy usage in decline and crude oil prices continuing to search for a floor, what are the prospects for a liquid market emerging in renewables and carbon emissions? And how sustainable will that market be? After all, without a transparent and liquid market, it is challenging to balance and optimise a portfolio.
These are not trivial issues for a risk manager. Renewable portfolios raise a host of modelling issues
The week on Risk.net, August 4–10Receive this by email