Latest Insight
First Look - Biden urges oil companies to lower gasoline prices | Goldman Sachs cuts 4Q22 Brent forecast
Read More →
 

Accessing the Environmental Markets 

 

After calculating emissions across Scopes (1,2,3), companies first look to reduce those emissions through targeted activities. However, most are unable to achieve 100% reduction and turn to environmental markets to purchase allowances/credits/offsets. 

For Environmental Markets

Voluntary Carbon Offsets

Emission Reduction Credits

Carbon Allowances

Renewable Fuels

Renewable Energy Certificates

A Wide and Diverse Market for Offsets

Purchasing offsets is not like purchasing stocks. Offsets are available in many forums with different investors, pricing, purchasing requirements, and transaction fees. Following is a small sample of these forums:

Voluntary Markets vs. Mandatory (Compliance) Markets

In voluntary markets, entities elect to purchase credits to offset emissions they are unable to directly eliminate

  • Credits are generated by projects that reduce atmospheric carbon beyond what is required by law
  • Credits play a crucial role in bridging the path to future reductions
  • Pricing can vary significantly by region/locality of offset projects

In compliance markets, entities are required to purchase allowances for emissions they produce

  • Allowances are issued/sold by governmental regulatory authorities
  • The supply of allowances drop each year, typically increasing the price as demand for allowances increases
  • Pricing is notoriously opaque given infrequent purchases

Environmental markets are complex to navigate. Let our team help.

Start the Conversation

Insights

Our market research offers a clear perspective with actionable insights.

Rates
Interest Rates Dashboard - Week Ending September 23
September 23, 2022
Metals
Base Metals Dashboard - Week Ending September 23, 2022
September 23, 2022
Oil
More Iran Supply Likely Soon? U.S., Iran negotiating JCPOA
September 02, 2022
Natural Gas
Freeport LNG outage update sends gas 16.5% lower
June 14, 2022
See More Insights
Differentiators

AEGIS is the recognized industry leader because of our:

Technology

Unmatched Technology

We leverage technology to distribute information, improve execution, assess scenarios, and deliver actionable insights through web and mobile apps. And our investment is ongoing.
Graph

Best Execution

We tailor recommendations to specific budgets, underwriting, lender covenants, and investor objectives – and partner with over 40 counterparties to arrive at fair value.
Insight

Unique Insight

The scale of our platform, a team dedicated to studying global commodity and rate markets, and an unmatched client base allow us to offer a unique perspective.
Focus

Complete Focus

It would be easy to pursue compromising activities and fee structures. We are 100% focused on capital and cash flow protection through fixed-fee contracts. No conflicts. Ever.

 300+

Entities

40+

Counterparties

75+

Sponsors and Lenders

6x Global Leader as Hedging Advisory Firm
^