Fuels strategy and investment

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 exposure under alternative policy and market outcomes.

Carbon price exposure

Track carbon price movements across compliance and voluntary markets
Monitor exposure across assets, portfolios, compliance periods, and regions
Compare current pricing with Veyt’s short-, medium-, and long-term forecast ranges

Policy and regulatory risk

Track regulatory developments that may change future carbon costs
Assess how policy design affects supply, demand and market balance
Monitor reform timelines and policy uncertainty affecting hedging decisions

Supply–demand balance

Use fundamental models to assess market structural tightness or surplus
Track allocation, auctions, emissions, and compliance demand
Understand how balance shifts affect long-term carbon cost exposure

Energy and emissions exposure

Monitor how power, gas, and fuel markets affect emissions and carbon allowance demand
Track energy market movements that may change compliance exposure
Assess weather-driven changes in generation, consumption, and emissions

Market volatility and liquidity

Monitor volatility, spreads, liquidity, and market behaviour
Assess how liquidity conditions may affect hedge execution
Identify when price moves are driven by fundamentals, policy, or positioning

Risk signals and metrics teams track

These are the signals risk and hedging teams use to assess exposure, hedging requirements, policy risk, and uncertainty around future market outcomes.

Carbon prices and forecast ranges

Carbon prices define current exposure an future cost
Forecast ranges help teams assess hedge timing, required coverage, and potential cost exposure across different time horizons
Scenario-based price paths help quantify upside and downside risk

Forward-looking market balance

Supply–demand balance shows whether carbon cost pressure is rising or easing
Structural market surplus or deficit affects long-term exposure
Balance changes help explain shifts in future price expectations

Policy scenarios

Regulatory design affects future supply, demand, and compliance obligations
Scenario analysis shows how policy outcomes affect carbon price trajectories and future cost exposure
Policy uncertainty creates exposure that cannot be captured by a single price path

Auction and supply signals

Auction volumes and schedules affect near-term supply
Auction clearing prices and participation indicate market tightness
Allocation changes influence compliance exposure and hedging requirements

Energy market signals

Power and fuel prices influence emissions and allowance demand
Fuel switching affects carbon exposure in the power sector
Energy market volatility can change hedging requirements quickly

Volatility and liquidity indicators

Volatility affects hedge timing, execution, and downside protection
Liquidity conditions influence spreads and execution risk
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

Why carbon price risk is difficult to manage

Carbon cost exposure changes with market fundamentals, policy expectations, energy prices, abatement economics, geopolitics, and macroeconomic conditions. Risk teams need to assess how these drivers may affect future costs, hedging requirements, and exposure across multiple possible market and policy outcomes.

Policy outcomes can reset exposure

Market balance is uncertain

Exposure varies across assets and time horizons

Energy markets can change carbon demand quickly

Single-price assumptions are not enough

Key carbon market drivers risk teams monitor

Risk and hedging teams monitor the interaction between regulation, market balance, emissions exposure, and energy market conditions.

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 risk and hedging teams use Veyt

Veyt helps risk and hedging teams move from fragmented market signals to a structured view of carbon exposure, risk, and hedging requirements.

Exposure assessment

Hedging strategy support

Scenario stress-testing

Policy risk monitoring

Cross-market risk analysis

Carbon risk workflow

From exposure to hedging decision

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

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

Customisable views for risk and hedging workflows

Different risk and hedging teams need different views depending on exposure, compliance horizon, and hedge strategy.

Risk management teams

Hedging and treasury teams

Compliance teams

Strategy and scenario teams

Quantitative and modelling teams

Carbon valuation platform — at a glance

The Veyt platform gives risk and hedging teams access to carbon market data, forecasts, policy analysis, dashboards, and analyst commentary.

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

Additional capabilities

Scenario outputs supporting internal stress-testing workflows
Market behaviour and participant positioning insights
Technical analysis including price trends, support, and resistance levels
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 risk and hedging systems

Who this is for

Common user personas

Intelligence platform

Data API

Resources

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Industry

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