Allowance shortfall or surplus price risk management

In order to determine whether you have a shortfall or surplus you need to effectively measure your actual emissions per facility and ideally determine a process for projecting forward your best estimate of future emissions in a way that is consistent with the strategic plans of the company at any point in time. 

This process needs to be done per site and whilst not overly complicated it can distract operational resources that need to focus on process delivery.  M&C Energy Group is able to efficiently manage this measurement and control process linking into the standard production planning process you currently utilise.

Once you have a robust view of your actual and projected position you can then start to risk manage the cost of a shortfall or the income of a surplus so as to maximise the benefit to your organisation.  We find the most effective mechanism for this is to use a Value at Risk approach to controlling the price exposure of your carbon position.  

As part of this service we can:

• Establish contracts with people that can provide a market for buying or selling your EUAs
• Provide daily position reporting and recommendations to buy or sell
• Enter the appropriate transfers in the appropriate web portals so that your position is settled correctly

If you would like someone to contact you about carbon position reporting - click here