Login
Request a demo
Menu
Risk management & hedging

Carbon market intelligence for risk management and hedging

Assess carbon price exposure, policy risk, market balance, and scenarios across global carbon markets.

Veyt combines market data, proprietary models, and analyst interpretation to help risk and hedging quantify exposure, test assumptions, and align hedging decisions with changing carbon market conditions.

In-depth coverage of
  • EU ETS
  • EU ETS2
  • North American Carbon
  • Global Carbon Credits
Talk to an expert
Placeholder link
Login

Intelligence platform

Carbon

EU ETS1, EU ETS2, North American Carbon, GCC

Energy Attribute Certificates

GOs, REGOs, Global Certificates

Power Purchase Agreements

Asset valuation, Deal flow, Market prices

Fuels

Biomethane, Transport fuels

Data API

Integrations

Modern market intelligence platform with API and Excel integration

Resources

Articles
Webinar recordings
Case studies
Press releases

Newsletter

Join our newsletter

Sign up to receive expert analysis, market insights, and key policy updates.

Industry

Trading & analytics

Market data and insight for better trading decisions

Risk management & hedging

Manage exposure and hedge risk across net-zero markets

Strategy & investment

Insight to guide strategy, investment and growth

Valuation & pricing

Price intelligence for accurate market valuation

Policy advocacy

Policy insight to support market positioning

Net zero market solutions

Request a demo

See how market intelligence supports trading, investments, risk management and other business objectives

What risk and hedging teams monitor with Veyt

Carbon risk is shaped by price volatility, regulatory uncertainty, supply–demand balance, emissions exposure, and energy market developments. Veyt helps risk and hedging teams monitor the signals that affect exposure, hedge timing, and downside risk.

Carbon price assumptions

  • Build carbon price assumptions across short-, medium-, and long-term horizons
  • Compare internal assumptions with Veyt forecasts and market data
  • Apply consistent carbon pricing inputs across assets, portfolios, and regions

Policy and regulatory scenarios

  • Assess how policy design affects future carbon price trajectories
  • Test valuation assumptions against alternative regulatory outcomes
  • Monitor policy developments that may change long-term pricing expectations

Supply–demand balance

  • Use fundamental models to assess market balance structural price trajectories
  • Track allocation, auctions, emissions, and compliance demand
  • Link price assumptions to the underlying drivers of market tightness or surplus

Emissions and carbon cost exposure

  • Assess how emissions exposure affects asset value and project economics
  • Apply carbon cost assumptions across financial models and investment cases
  • Monitor sector-level developments affecting future compliance exposure

Cross-market assumptions

  • Link carbon price trajectorieswith power, fuel, and emissions market dynamics
  • Assess how energy market developments affect carbon price trajectories
  • Align carbon pricing inputs with wider market assumptions used in valuation

Valuation inputs and assumptions teams need

These are the inputs valuation and pricing teams use to build carbon price assumptions that are transparent, consistent, and testable.
Request a demo
Carbon price forecasts
  • Short-, medium-, and long-term forecasts support valuation assumptions across horizons
  • Forecast ranges help reflect uncertainty rather than a single fixed price view
  • Modelled price trajectories provide a basis for internal pricing assumptions
Market pricing and historical data
  • Historical prices provide context for current and future assumptions
  • Observable market pricing supports near-term benchmarking
  • Differences between market prices and modelled forecasts highlight assumption risk
Policy scenarios
  • Policy scenarios show how regulatory design choices affect price outcomes
  • Alternative market design assumptions create different valuation ranges
  • Scenario outputs support sensitivity analysis across investment cases
Market balance outlook
  • Supply–demand balance helps explain long-term price direction
  • Structural surplus or tightness affects future carbon price assumptions
  • Balance shifts provide context for changes in forecast trajectories
Emissions, allocation, and auction data
  • Emissions data supports exposure and compliance cost assumptions
  • Allocation and auction data affect expected supply and market balance
  • Underlying datasets make valuation assumptions easier to trace and review
Drivers
Tracking short- and long-term market trends to clarify current and potential impacts from disparate drivers
Market behaviour
Analysing participant behaviour and market sentiment while commenting on price drivers. An in-depth focus on industry sectors by understanding their marginal abatement costs and trade behaviour allows for informed decision-making. Our pan-European power market modelling is the backbone for our granular utility-sector insights and hedging strategy analysis
Policy developments
Following relevant European carbon and energy market legislation, providing foresight on political outcomes, and assessing market impacts
Supply & demand forecasts
Generating insights on how policy ambition and regulatory change shape short- and long-term supply dynamics. Addressing sensitivities of key assumptions for EU ETS market participants. Following sector-specific trends, production data, and decarbonisation pathways to track and forecast demand for carbon European Union allowances (EUAs)
Technical analysis
Identifying key trends in the market, spotting relevant support/resistance levels, and technical patterns
Market data
Key market data for the EU ETS and the wider energy complex. Prices, volume, open interest, seasonality charts to assess liquidity, and participant behaviour
Policy outcomes can reset exposure
  • Regulatory changes can materially shift future carbon costs
  • Policy risk impacts market expectations before adoption and implementation
  • Hedging strategies need to account for multiple possible outcomes
Market balance is uncertain
  • Supply, demand, and compliance behaviour must be modelled
  • Allocation, emissions, and auction assumptions affect exposure estimates
  • Small changes in balance assumptions can shift hedge requirements
Exposure varies across assets and time horizons
  • Short-term price volatility and long-term structural trends create different risks
  • Compliance exposure differs across sectors, assets, regions, and contract types
  • Hedge strategies must reflect both timing and exposure profile
Energy markets can change carbon demand quickly
  • Fuel switching, power demand, and generation mix affect allowance demand
  • Energy market volatility can increase or reduce emissions exposure
  • Weather-driven changes may alter short-term carbon risk
Single-price assumptions are not enough
  • Carbon risk varies across policy pathways and market balance outcomes
  • Risk teams need scenario ranges, and probability weighting of policy outcomes, not only central forecasts
  • Downside exposure must be tested against alternative price trajectories

Why carbon price risk is difficult to manage

Carbon price risk is difficult to manage because exposure changes with both market fundamentals and policy expectations. Risk teams need to quantify exposure before regulatory outcomes and market balance are fully observable.

Key carbon market drivers valuation teams monitor

Valuation and pricing teams monitor the drivers that shape long-term carbon price assumptions, not only short-term price movements.
Regulatory design defines compliance obligations and market structure
Reform proposals will affect supply and change, demand, and price expectations
Policy timelines influence hedge timing and exposure management
Allocation and emissions trends determine market tightness
Structural balance shapes long-term carbon cost exposure
Compliance demand affects near-term market pressure
Power and fuel prices influence emissions and abatement incentives
Fuel switching changes allowance demand and exposure
Weather-driven energy demand affects generation and emissions
Industrial output affects emissions and compliance demand
Economic cycles influence energy consumption and market balance
Geopolitical developments impact fuel markets and carbon pricing
Liquidity conditions affect volatility, spreads, and execution risk
Speculator positioning can amplify short-term price movements
Auction demand and volumes signal near-term market tightness
Abatement costs influence long-term carbon price trajectories
Technology deployment affects structural allowance demand
Sector decarbonisation changes future compliance exposure

How valuation and pricing teams use Veyt

Veyt helps valuation teams move from static carbon price inputs to structured assumptions that can be tested, compared, and explained.

Price assumption setting
  • Build carbon price assumptions using forecasts, market data, and scenario outputs
  • Align assumptions with market balance, policy pathways, and emissions fundamentals
  • Apply consistent price inputs across assets, portfolios, and valuation models
Valuation sensitivity analysis
  • Test asset values against alternative carbon price trajectories
  • Quantify sensitivity to policy, market balance, and emissions assumptions
  • Assess downside and upside valuation impacts across scenarios
Benchmarking and validation
  • Compare internal carbon price assumptions against Veyt forecasts and market data
  • Identify where internal assumptions diverge from market pricing or modelled outcomes
  • Use structured datasets to support review, governance, and auditability
Policy scenario testing
  • Assess how regulatory outcomes affect future carbon price levels
  • Translate policy design options into market balance and price implications
  • Support valuation work where policy uncertainty is a material input
Cross-market valuation support
  • Link carbon price assumptions with power, fuel, and emissions market drivers
  • Align carbon pricing inputs with wider energy market assumptions
  • Evaluate exposure across EU ETS, EU ETS2, North American Carbon, and Global Carbon Credits
Exposure view
  • Carbon prices
  • Portfolio exposure
  • Compliance obligations
  • Asset-level emissions
  • Regional market exposure
Risk interpretation
  • What is driving exposure?
  • Which policy outcomes matter?
  • How does market balance affect future cost?
  • What is the downside scenario?
  • Which assumptions change hedge requirements?
Hedging view
  • Hedge timing and coverage
  • Scenario-adjusted exposure
  • Downside risk assessment
  • Market balance sensitivity
  • Cross-market risk signals

Carbon risk workflow

From exposure to hedging decision

Veyt supports the workflow from exposure identification to scenario testing and hedge planning.

Request a demo

Customisable views for valuation and pricing workflows

Different valuation teams need different levels of detail depending on asset exposure, investment horizon, and internal governance requirements.
Valuation and financial modelling teams
  • Integrate carbon price forecasts into valuation models
  • Apply scenario-based carbon pricing across investment horizons
  • Test valuation sensitivity to policy and market assumptions
Investment and strategy teams
  • Assess long-term carbon cost exposure across assets and portfolios
  • Evaluate investment cases under alternative carbon market scenarios
  • Link carbon pricing assumptions to decarbonisation and capital allocation decisions
Risk and scenario teams
  • Quantify downside risk from carbon price and policy uncertainty
  • Compare valuation outcomes across alternative market balance assumptions
  • Stress-test exposure under different regulatory pathways
Corporate finance and transaction teams
  • Apply consistent carbon price assumptions in transaction and investment cases
  • Benchmark assumptions used in due diligence and asset valuation
  • Assess how carbon costs affect project economics and future cash flows
Quantitative and modelling teams
  • Integrate structured carbon datasets into internal valuation frameworks
  • Use Veyt forecasts and scenarios to test internal pricing assumptions
  • Trace assumptions back to emissions, allocation, auction, and market balance data

Carbon valuation platform — at a glance

The Veyt platform gives valuation and pricing teams access to carbon forecasts, market balance models, policy scenarios, structured datasets, and analyst commentary.
Request a demo
Carbon price forecasts
Compliance market balance
Policy scenario analysis
Historical price and activity data
Emissions and allocation datasets
Cross-market carbon insights

What the platform provides

Standard capabilities

  • Short-, medium-, and long-term carbon price forecasts
  • Market balance modelling across compliance carbon markets
  • Policy monitoring and scenario analysis for regulatory developments
  • Structured datasets covering prices, emissions, allocation, auctions, and energy market drivers

Additional capabilities

  • Scenario outputs supporting valuation sensitivity analysis
  • Historical carbon price data supporting benchmarking and assumption review
  • Cross-market analysis linking carbon, energy, and emissions signals
  • More than 150 structured datasets supporting internal modelling workflows
  • Analyst updates across daily, weekly, and monthly horizons
  • Event-driven commentary interpreting policy and market shocks
  • API access for integration into internal valuation and pricing models

Who this is for

  • Valuation and pricing teams setting carbon price assumptions
  • Investment teams assessing carbon cost exposure in asset valuation
  • Financial modelling teams integrating carbon prices into internal models
Additional users
  • Corporate finance teams
  • Transaction and due diligence teams
  • Risk and scenario teams
  • Strategy teams assessing long-term carbon exposure

Market intelligence

Consulting services

Resources

Navigate

Join our newsletter

Newsletter Subscribe

Veyt is committed to protecting and respecting your privacy, and we’ll only use your personal information to administer your account and to provide the products and services you requested from us. From time to time, we would like to contact you about our products and services, as well as other content that may be of interest to you. You may unsubscribe from these communications at any time. Click here to view our terms and conditions.

Consent

Innovation

Innovation for us is a mindset encompassing the courage to challenge norms and the adaptability to evolving landscapes. Our commitment means we go beyond technological advancements, aspiring to redefine what’s possible.

Search