Learning Platform - "Markets & Trading"
Course: Emissions & Carbon Markets
About the Course
In the first level of the “Emissions, Emission Markets & Trading” programme focus is on the actual, physical emission of greenhouse gasses. The Kyoto protocol and its (potential) follow ups are incorporated in this programme.
During this programme students learn about technical solutions to lower emissions. Sustainable energy (renewables, such as biofuels) are covered.
This programme also covers financial solutions in the form of subsidies and taxation. And students learn about trading-related solutions. The European Union mandatory regime is incorporated as well as voluntary mechanisms.
Knowledge of physicality and technical background are essential in order to understand pricing mechanisms and the organisation of emission markets. Without this know how one cannot embed logic with respect to trading & risk management.
Course Contents
Fundamentals of emissions
- Concerning the greenhouse gasses and their consequences
- About Kyoto & UNFCCC
- Covering the Conferences of Parties (COP)
Emission rights – Carbon markets
- About the basic idea of creating a price incentive or cost
- Concerning the trading of emission rights
- Explaining the consequence for power prices & the merit order
Emission trading scheme (ETS)
- Covering EU’s Directorate-General for Climate Action (DG CLIMA)
- About the EU-ETS cap & trade mechanism; how does it work?
- Concerning European Union Allowances (EUAs) & registration
Clean development mechanism (CDM) & Joint implementation (JI)
- Concerning project-based UN initiatives
- Certified emission rights (CERs) & emission reduction units (ERUs)
Guarantee of origin, green certificates & others
- About carbon credits
- Concerning green certificates, verified emission rights & others
- Covering initiatives based on voluntary participation
Pricing of emission rights
- About the ETS phases: 2005-2007, 2008-2012, 2013-2020
- Concerning price driving factors
- Carbon taxation instead of capping & trading