/ Publications / The financial side of energy markets in the low-carbon transition
Energy | Working Paper
The financial side of energy markets in the low-carbon transition
18 July 2022
BY:HIEMSTRA Liebrich M.
This article will explain the characteristics of the financial side of energy markets. It aims to clarify why financial contracts are needed in the energy sector and how such transactions are conducted by energy companies. A specific focus in this article is the low-carbon transition. This focus is also reflected in the description of the different types of financial contracts discussed herein, including derivatives relating to cap-and-trade schemes for CO2 emissions and environmental, social and governance (ESG) financial products. In addition, this article addresses how these financial contracts in the energy sector are regulated and will pay attention to anti-manipulation rules in the European Union and the United States. The low-carbon transition and climate finance is taken as a guidance in discussing the topics above and pursues to shed light on the question how financial contracts in the energy sector may contribute to a low-carbon transition.
In this paper, we investigate two main schemes for contracting demand-side flexibility by the Distribution System Operator (DSO) at the planning stage: a voluntary demand-side connection agreement where consumers offer [...]
The Russian invasion of Ukraine in February 2022 compounded an already difficult policy landscape characterised by rising energy prices, international supply chains’ disruptions, growing greenhouse gas emissions and exacerbating geopolitical [...]
On 14th February 2022, the European Commission published a ‘Call for evidence for an impact assessment’ (Call for Evidence) and Public Consultation related to a new framework for standard essential [...]
To fulfill the Paris Agreement commitments and stimulated by an unprecedented amount of public resources put in place to recover from the COVID-induced recession, European governments have recently announced sizable [...]
Join our community
To meet, discuss and learn in the channel that suits you best.