Environmental commodity markets are characterized by fragmented regulatory regimes and subject to frequent mispricings.

 

Regulatory regimes

Nearly 20% of global emissions are currently covered by regulated carbon pricing. There are over 55 active emissions programs across 6 continents which create a fragmented global marketplace.

 

out of balance

Our markets are dominated by emitters such as oil producers, refiners, power plants and cement producers who are required to reduce emissions by regulators. The limited participation of financial players due primarily to the complex nature of these markets can lead to frequent mispricings.