Vantage Behavioural Insights helps market participants navigate EU ETS supply and demand
AMSTERDAM, June 11, 2024 /PRNewswire-PRWeb/ -- ClearBlue Markets, a leader in carbon market intelligence, is pleased to launch Vantage Behavioural Insights. This groundbreaking emissions trading model, tailored for the European Union Emissions Trading System (EU ETS), leverages advanced behavioural analytics to offer unparalleled insights into companies' emission allowance management strategies. Users are empowered to make informed decisions in the ever-evolving carbon market landscape. Behavioural Insights is available exclusively to Clear Blue Vantage Summit subscribers.
Significant Changes in the EU ETS
Over the next five years, the EU ETS will undergo transformative shifts, redirecting its focus from utilities and fuel switching to industries and transport. This pivotal transition is driven by crucial policy adjustments, including the introduction of the Carbon Border Adjustment Mechanism (CBAM), the phasing out of free aviation allowances, and the inclusion of maritime transport with quickly decreasing free allocations.
As a result, emission trends are expected to undergo significant changes. While power emissions are projected to decrease substantially from 2023 to 2030, industrial emissions will decline gradually. Conversely, transport emissions, particularly from maritime sources, are forecasted to surge upwards by more than double. This shifting landscape redistributes the responsibility for covering emission deficits from power generation to the industry and transport sectors, heralding a profound realignment in emission reduction strategies across various economic segments.
ClearBlue's Innovative Approach
Vantage Behavioural Insights addresses these challenges by providing a granular analysis of the supply and demand dynamics within the EU ETS. It delivers deep insights into market dynamics by integrating empirical data on purchasing and selling behaviours and employing advanced behavioural analytics. With over 30 clusters of companies analyzed based on trading behaviours, Behavioural Insights incorporates principles from behavioural finance and trading to predict market trends accurately.
Nico Girod, ClearBlue Market's Chief Technology Officer, emphasizes the importance of the Behavioural Insights approach: "Understanding the impact of new changes in the EU ETS requires examining corporate trading behaviours, which drive prices and reveal market deficits and surpluses of emission allowances. For example, our modelling predicts more deficits from 2025 to 2030 due to increased trading, meaning fewer allowances will be available. This will push industries and transport companies to improve risk management and hedge more to avoid high future prices."
Key Features and Benefits of Vantage Behavioural Insights:
- Flexible Scenarios: Accommodates both fundamental and behavioural scenario analysis to predict a range of future market conditions.
- Unique Data Integration: Includes empirical data on purchasing and selling behaviours for accurate market predictions.
- Detailed Cluster Analysis: Breaks down the EU ETS into over 30 clusters, enabling precise analysis of market segments.
- Regular Updates: Provides quarterly updates with commentary on changes in results and sensitivities, keeping users informed of the latest developments.
- Accurate Market Analysis: Offers a clearer picture of market deficits and surpluses by modelling companies' buying and selling activities.
- Informed Decision-Making: Helps companies and policymakers make better decisions with detailed insights into market dynamics.
- Enhanced Risk Management: Predicts how industries and transport sectors will respond to market changes, improving risk management strategies.
- Behavioural Insights: Utilizes behavioural analytics to provide real-world insights into market behaviour, enhancing the accuracy of market predictions.
- Strategic Planning: Supports effective strategic planning by revealing price sensitivity and future market trends.
Fiona Oliver-Glasford, Chief Revenue Officer of ClearBlue Markets, underscores the model's transformative impact: "The partnership between ClearBlue and renowned EU ETS market analysts Jan Ahrens and Philipp Ruf introduces a game-changing product to ClearBlue Vantage, offering unparalleled insights and strategic advantages. Behavioural Insights integrates the complexities of the evolving emissions trading landscape with confidence and precision."
Behavioural Insights is available exclusively to users subscribed to the Summit level of Vantage, ClearBlue Market's platform for comprehensive carbon market intelligence. Summit subscribers gain access to the most advanced tools and data, enabling them to stay ahead in a rapidly changing market.
For more information or to subscribe to ClearBlue Vantage Summit, please visit www.clearbluemarkets.com.
Media Contact
Laurie Smith, ClearBlue Markets, 1 4169940611, [email protected], https://www.clearbluemarkets.com/
SOURCE ClearBlue Markets
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