Emission market and risk management
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Keywords
CO2 ; Emission market ; EconomyAbstract
In the context of reducing CO2 emissions, avoiding climate change and global warming, the Kyoto Protocol was signed in 1997, which contains legislative commitments and obliges 37 developed economies to reduce emissions of greenhouse gases. Corresponding policies are followed by European countries, but also by several large economies. Under these conditions, the exchange of carbon credits is allowed, which has led to the creation of a new market, the market for emission allowances (emission unit). But at the same time with the emerging environmental market, the already developed energy market pre-existed. But after 9/11, the world changed as US aggression against oil-producing countries in the Middle East and the Enron energy scandal, combined with the deep economic crisis of recent years, created a greater market interest in the field of energy derivatives. This work provides an overview of the above markets and due to the specificity of the environmental market and the intense volatility of fuel prices, methods of environmental and energy risk management will be applied.