Do you know how much free allocation you’ll get in Phase 4? What will the carbon price be in 2021 and beyond?
As the EU ETS heads for a 55% cut in emissions by 2030 every company runs the risk that its free allocation will shrink. At the same time that free allocations are being cut, EU policy makers are trying to force carbon prices up. Without an independent, expert carbon risk opinion companies can’t budget for future carbon costs and their chances of making the right emissions reduction investment decisions are reduced.
The EU ETS has created a real market that is complex and evolving. Most companies involved in it don’t have sufficient resources to justify dedicated carbon specialists. However, we believe that everyone should have access to cutting edge analysis, expertise and insights so we have devised the Redshaw Advisors Carbon Support Programme (CSP).
We provide our customers with a tailored risk management package that enables them to understand, manage and get ahead of their EU ETS risks. From what future free allocation may look like to how price may evolve over time, the CSP enables companies to quickly and easily get on top of their carbon risks so that they can concentrate on what they do best.
One of the most important pieces of the carbon risk puzzle is what the market price will be in the future. CSP customers benefit from our partnership with independent carbon price forecasters and commodity research specialists Energy Aspects. As well as providing price forecasts, essential to measure financial risk, they also deliver comprehensive, monthly, carbon market research. Learn more about carbon price forecasts.
Too much detail can be overwhelming, so we read the research, assess future free allocation, add in our own market insights, and we produce a quarterly report that explains what is influencing your risk, how it will affect you and, crucially, what you can do to reduce it.
The Carbon Support Program includes:
♦ ¹ A tailored quarterly EU ETS Financial Risk Audit that includes; cost analysis by company and installation, analysis of long term free allocation, EU ETS policy developments and market insights, hedge strategy cost/benefit analysis ♦ ² Access to the RAL team for answers to any EU ETS query (3).