ESP Consulting advised the Greek Public Power Corporate (PPC) on EUA trading strategies and risk management of their emissions position within Phase II of the EU ETS.
The services delivered included:
- Provision of subject matter expertise on the development and implementation of EUA trading strategies, and management of the company’s overall CO2 position;
- Development of prototype valuation and risk management models to baseline all exposures and contracts, inform the assessment of alternative strategic options, and support PPC in the initial management of trading activities;
- Development and documentation of a full suite of risk reporting specifications for (PPC’s carbon risk) exposure including models, reporting templates, methodology, metrics, price curve granularity and shape etc.;
- Outline systems and process roadmap required to support active trading and risk management of CO2; and
- Operational support including training of traders and shadowing of the first exchange-based EUA transactions undertaken by the client.
Our recommended trading strategy was approved by the Board and subsequently implemented.
This work was undertaken in collaboration with Capgemini.