The pace of the energy transition from fossil fuels to renewables is expected to receive a significant recalibration in the next few weeks as representatives from nearly 200 countries gather in Glasgow for the 26th United Nations Conference of Participants (COP26).
Substantive agreement on further commitments is unlikely this year for a number of reasons. And even if the conference produces a broad outline among nations to decarbonize it is unlikely to be credible without an enforcement mechanism that still does not exist.
Power Risk Oct21 (pdf)
DownloadInterest in carbon markets has risen significantly over the past couple of years. This high-level survey examines recent trends and highlights some features of the most developed markets. It provides some context around investor interest as well as the role such markets play in helping corporate risk managers.
Power Risk Jun21 (pdf)
DownloadWhile federal governments thoughout the world have settled on carbon pricing mechanisms for incentivizing development of renewable resources, the U.S. remains in political limbo. Arguments can be made for the efficiency of markets, while other can be made for more clearly-defined standards defined by law. This Utility Dive article describes the state of play in Washington in 2021.
Jointly-written overview of carbon pricing schemes and carbon taxes
IHS Markit's global index documentation and link to white paper
KraneShares Global Carbon ETF is one of few public securities available
The proliferation of voluntary offsets and opacity of markets creates challenges for buyers