Decarbonisation and long-term power pricing dynamics
Carbon pricing dynamics have been designed to help reach global decarbonisation goals efforts and they have a considerable effect on trading strategies as a result. It’s important that traders have a strong grasp on how the carbon market works and in particular, how carbon costs affect the generation stack. Carbon pricing transmissions into wholesale electricity prices by increasing the cost of fossil fuels, which can cause trading and risk implications for traders when the rise and fall of those costs cannot be predicted.
