International Emissions Markets - Trading & Risk Management

A compact knowledge and skillset development course that will provide participants with comprehensive knowledge of the major carbon emissions trading markets. The course focuses on the practicalities of carbon trading, i.e. what carbon is and how it is traded, but will also provide participants with an understanding of the regulatory frameworks underpinning the market. The goal is to deliver the broad picture of how carbon trading functions to professionals with various backgrounds. The course takes an in-depth look at the goals of emissions trading, the features of emissions markets, and potential price implications of market news, organisations within the market, and the trading tools and strategies adopted by differing types of market participants.

As an outcome from the course you will:
• The reason for and goals of emissions trading
• The main features of the markets; e.g. types of carbon credits, characteristics of trading markets, technical infrastructure
• Potential price implications of market news
• The types of organisations that dominate the market and their motivations for trading
• The range of trading tools available and the potential strategies for which they can be employed

Course Information

Price £1400.0 + VAT
Duration 2 days
Location Singapore
Available Dates
2016-03-13 00:00:00.0  Register Now

Who Should Attend

Who is the programme for:

New or experienced emissions, oil, gas, power and coal traders or brokers

Technical and financial staff in companies with an emissions exposure

Managers with responsibility for trading desks

Senior managers, lawyers, accountants and auditors who need to understand compliance with emissions regulations

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

Day 1 —Emission Markets :

Session 1

• Why emission management is important

• Greenhouse gases explained

• Relationship between emissions and climate change

• Economic incentive for low carbon investment

• Production and consumption emissions

• Impact of emission management on energy markets

Session 2

• Approaches to reducing emissions

• Regulation – i.e. minimum emission levels

• Technology – i.e. CCS, smart meters, energy-efficient electrical goods

• Market based mechanisms – i.e. trading

Session 3

• Structuring emission markets

• The ‘cap and trade’ concept

• Allowance caps

• Emission benchmarks – i.e. 1990, 2005, 2020, business as usual etc.

• Banking emissions

Session 4

• Current operational emission markets – structure, market coverage (% emissions and installations/sectors), caps, auction process, and price history

• Kyoto Second Commitment Period

• EU ETS Phase Three

• New Zealand ETS

• Northeast US Regional Greenhouse Gas Initiative (RGGI)

• Tokyo Metropolitan Trading Scheme

• Australia ETS

• California Trading Scheme

• China Trading Schemes (Shenzen, Shanghai, Beijing, Guangdong, Chongqing, Hunan and Tianjin)

• Western Climate Initiative (California and Quebec)

Session 5

• Planned emission markets

• South Korea ETS

• Mexican Voluntary CO2 Trading Scheme

• Taiwan Carbon Offset Scheme

• India Mandatory Energy Efficiency Trading Scheme

• Thailand Voluntary Emissions Market

• Vietnam ETS

Day 2 — Introduction to Emission trading

Session 1

• Emission markets

• Primary emission markets, i.e. Kyoto first and second commitment periods

• Secondary emission markets, i.e. CDM/CER and JI/ERU markets

Session 2

• A brief history of the EU ETS (2005 – 2013)

• Regulation

• Emission reduction / price targets

• Allowance allocation

• Market development from phase one through three

Session 3

• Price drivers

• Supply and demand

• Economy – growth / contraction

• Renewable energy development

• Policy and regulation

• Correlations with other commodities

Session 4

• Trading emissions

• OTC vs. Exchanges

• Spot, forwards, futures and options

• Derivative instruments – swap, cap, floor, zero-cost collar etc. and application to emissions

• Embedding emissions with other products – clean spark and clean dark spreads

Session 5

• Technical analysis and application to emission market

• Charts

• Mathematical indicators

• Trend line

• Technical analysis of fossil fuel (oil, gas, coal) markets to determine impact on emissions

Session 6

• EU ETS today – an assessment of what has gone wrong

• Use of secondary emission market credits

• Banking of allowances

• Generous allowance caps

• The ‘economic’ factor

Session 7

• Restructuring the EU ETS

• Short-term / backloading

• Longer-term reform – how to adjust supply or demand to support prices and manage the economic impact on price