Carbon Support Program (CSP): Maximizing Compliance in the Carbon Market
Gain In-Depth Insights and Expert Analysis for EU ETS Compliance
What is a CSP (Compliance Carbon Market)
The Carbon Support Program (CSP) is a tailored support package designed for companies with installations under the EU ETS (European Emission Trading Scheme). It provides comprehensive assistance by leveraging the expertise of RAL’s carbon advisors who act as in-house analysts for clients. The CSP takes into account the company’s carbon exposure, budget, and any legislative changes in the CO2 market, such as Fit-for-55. With these factors in mind, the RAL team delivers a detailed Carbon Risk Audit Report to address the specific needs of each client.
How big is the exposure?
The CSP caters to SMEs and large industrials with a minimum EUA shortfall of 5000 per annum. The cost of the CSP is typically lower than the potential savings for the company, making it an advantageous solution.
What does it do?
- Provides market intelligence and reliable price forecasts from expert analysts.
- Explains all relevant changes in the compliance carbon market, including legislative, fundamental, and energy complex factors.
- Requires the client to fill out a “Data Checks” Spreadsheet each quarter, enabling RAL to generate a tailored report based on the provided data.
What’s in the report?
- Analysis of the financial exposure to the EU ETS.
- Risk management recommendations and priorities.
- Analysis of risks and opportunities.
- EUA Price Forecasts from renowned analysts (e.g., Morgan Stanley, Macquarie, Refinitiv).
- Free allocation forecasts using different scenarios.
- Cost of buying requirements for carbon.
How long is the report and how often do I get it?
The report is comprehensive, spanning 20-23 pages. The RAL analyst will prepare a summarized presentation and deliver it to the client each quarter or bi-annually, based on the client’s preference.
CSP reports are produced in January, April, October, and December. Clients can opt for quarterly reports (sent in the mentioned months) or bi-annual reports (January + October OR April + December).
If I don’t do this, what’s my risk?
Without a dedicated budget and strategy for managing carbon exposure, your risk and financial exposure in the carbon market increase significantly. The carbon market is politically driven, subject to speculative activity, and directly influenced by the larger energy complex. Having a specialist manage your carbon market activities through the CSP is more cost-effective than having an in-house resource solely focused on this area.
How many reports have you delivered so far?
We have delivered 4 Quarterly Reports to existing clients and welcomed a new CSP Client from Austria.
Who is my key contact?
You will have our dedicated Business Development Manager (BDM) or Trading team at your service.
How long is the contract limit?
The initial contract is for one year. If you choose not to cancel, we will automatically renew the contract for continued support.