Emissions certificates and natural gas
The natural gas market comprises over 25% of the total European energy usage, and this share will only grow in the coming years. Because many view it as a transition fuel to truly sustainable solutions, the use of natural gas in all its forms will increase significantly.
Most participants in this market will require risk management of the accompanying gas price exposures.
Emissions certificates will also be part of the solution – and a necessary tool in the hedging arsenal – as users of fossil fuels look at new markets and ways to reduce their carbon footprints,
GRM is an active participant in all these markets.
LNG
GRM trades many global natural gas markets and can help lock in positive arbitrage economics for shippers of LNG
Liquefied natural gas is natural gas cooled to about minus 160°C. In its liquid form, LNG is transported around the world to LNG receiving terminals. Its price depends on the price of natural gas in both the terminal market and at the point of liquefaction.
Emissions Allowances
An emission certificate is an allowance to emit one tonne of carbon dioxide equivalent during a specific period. The certificate is traded on the EU Emissions Trading System where the total amount of CO2 that the system can emit is not only capped, but reduced by 2% every year.
Within this cap, companies can buy and sell emissions certificates. Companies that reduce more than the 2% required can sell their reductions to the market, and companies who need more can buy them.
We are a liquidity provider through our market access and can quote on the spot or forward maturities. In addition, we help clients reach their compliance obligations through the buying and selling of certificates.
Here to assist
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