Workshop
Institutional Framework for the Carbon Market: Can Financial Markets and Institutions be a Model?
Date: November 25, 2010
Time: 12.00 – 18.30
Venue: Institute of Banking and Finance (i:bf), University of Graz, Austria Universitaetsstrasse 15/F2, SR 15.25
Aim of this workshop: Aim of this workshop is to discuss the role of financial markets and institutions for the carbon market, with a special focus on the EU Emissions Trading System (EU-ETS). Questions addressed are the role banks play for hedging companies under the EU-ETS, whether a higher degree of regulation and market oversight is needed for the EU-ETS and what the main differences to other commodity markets are. Furthermore it will be discussed what lessons can be learned from financial markets regarding market oversight and from central banks regarding the management of monetary policy. The workshop brings together leading experts of carbon market policy from academia and practice.
Contact and registration: Prof. Roland Mestel Institute of Banking and Finance, University of Graz Email: silvia.gersin@uni-graz.at Phone: +43 316 380 7300
Agenda 12:00 – 12:30 Welcome and Introduction
Roland Mestel (Institute of Banking and Finance) and Andreas Tuerk (Wegener Center)
12:30 – 14:00
Session 1 Quo Vadis, EU-ETS?
Barbara Buchner, Climate Policy Initiative, Venice: Is there a need for more market oversight and regulation in the EU-ETS?
Stefan Schleicher, University of Graz and Austrian Institute for Economic Research: The role of CO2 prices for low-carbon technologies: latest empirical evidence from the EU-ETS.
Michael Loretz, University of Graz: A real option-based approach for CO2 price management.
14:00 – 14.30 Coffee break
14:30 – 16:00
Session 2 Carbon markets in practice: Lessons from financial and commodity markets
Stefan Ulreich, E.ON Energy Trading, Duesseldorf: The role of the CO2 price for investment decisions in the energy sector: Is the CO2 market sufficiently hedged against price risks?
Nicolas Stephan, Caisse des Dépôts, Paris: Managing carbon markets: Lessons from commodity markets.
Claire Dufour, BlueNext, Paris: Regulating carbon markets: The view of a CO2 exchange.
16:00 – 16.30 Coffee break
16:30 – 18:00
Panel
Discussion What is needed to increase the success of the CO2 market?
Panelists: Barbara Buchner, Claire Dufour, Nicolas Stephan, Stefan Ulreich
18:00 Concluding remarks by Roland Mestel and Andreas Tuerk
About the participating organizations: BlueNext: BlueNext is one of the leading environmental trading exchanges, founded by NYSE Euronext and Caisse des Dépôts. BlueNext offers spot trading of CO2 emission rights and derivative products for the EU-Emissions Trading Scheme, as well as Certified Emissions Reductions (CERs) generated under the Kyoto Protocol’s Clean Development Mechanism. Claire Dufour is product manager and participates in the development of new products and services and monitors regulatory and competitive environments of carbon markets. Caisse des Dépôts: The Caisse des Dépôts group, a long term investor, is a public group in France serving the economic development of the country. Within CDC, CDC Climat Research is a centre for analysis and research on climate change economics. It provides information and expertise to the general public, companies, experts and public decision-makers. Nicolas Stephan, having a strong background in global commodity and energy markets, carries out research on carbon funds and innovations in carbon finance. Climate Policy Initiative: CPI was established by George Soros as a nonprofit institution that examines the effectiveness of energy and climate policies around the globe. It works closely with the finance and business communities to understand how emerging climate policies create and affect markets that allocate investment capital. The initiative maintains offices in key countries around the world. Barbara Buchner is director of the CPI office in Venice, Italy. E.ON Energy Trading: E.ON Energy Trading is one of Europe’s leading energy trading businesses and the commercial heart of E.ON, one of the largest investor-owned power and gas companies in the world. As the link between E.ON and the world’s wholesale energy markets, the company buys and sells electricity, natural gas, oil, coal, freight, biomass and emissions certificates. Stefan Ulreich is one of the leading energy policy experts in E-ON Energy Trading. Before joining E.ON Energy Trading he worked as a quantitative analyst in an investment bank. University of Graz: Within its current research portfolio the University of Graz combines excellent know-how regarding carbon markets (Wegener Center) with long term experience in the fields of finance and investment (Institute of Banking and Finance). The research is based on a strong theoretical background and is applied in empirical market analyses. Stefan Schleicher is senior advicer to the Wegener Center. Michael Loretz is a PhD canditate at the Institute of Banking and Finance.