Climate constraints can be a definite game changer. Enerdata helps government institutions simulate policies and companies evaluate impacts on their strategy. Enerdata provides unique and insightful analysis on emissions forecasting, carbon price and market evolution globally.
Expertise
Enerdata has the ability to provide in-depth analysis of all elements of carbon markets as well as to produce a combined overarching view taking into account driver interactions. Enerdata is able to provide insights and advice on:
- GHG emissions forecasts by sector - Using EnerMed Environment, our proprietary model dedicated to emissions forecasts, Enerdata provides detailed emissions forecasts by sector and by end-use.
- Scenario Analysis of Regulatory measures - with simulation based models such as POLES, Enerdata designs multiple scenarios that reflect differing regulatory environment to assess the impact of a given carbon constraint level.
- Carbon price projections - Enerdata helps you to shape your low-carbon strategy by providing you with the right knowledge to evaluate your investments and costs, and to mitigate your future expenses. – see focus here under.
Enerdata uses a series of sophisticated tools to derive its forecasts and insights:
- Global GHG emissions database - Enerdata develops and maintains one of the most comprehensive database on global greenhouse gas emissions, with detailed sector-specific time series.
- Carbon Market Tool (CMT) - CMT allows for a detailed analysis of existing and fictive carbon markets worldwide using Marginal Abatement Cost curves derived from the POLES model.
FOCUS – Carbon price projections
Gaining insight into future carbon emission costs and taking proactive steps to reduce them is not only imperative but essential for the sustainability of businesses, environment and the economy. However, the question remains: how can businesses effectively approach this challenge? As the world heads towards decarbonisation goals, it becomes essential for businesses to understand projected carbon costs.
Benefits
For Energy-Intensive Industries: Benefit from robust quantitative projections of carbon prices in the long term, enabling you to evaluate your potential investments based on reliable data. Plan and invest in greener technologies, such as renewable energy, energy efficiency, and clean technologies, to mitigate future carbon emissions costs. Evaluating strategic decisions and anticipating potential risks and financial impacts in the present is essential.
For Financial Institutions: Evaluate the long-term profitability of your investment portfolio using robust carbon price projections. Make informed decisions by anticipating future carbon price increases. Assess the financial risks associated with climate change and build strategies against those risks.
For Governments: Shape your climate policies and incentives with informed decisions supported by the assessment of carbon pricing trends and their financial impact on the economy.
Enerdata leverages its superior POLES model with its dedicated carbon market simulation module to produce detailed, reliable & annual Carbon Price Forecasts up till the year 2050. This unique methodology can be replicated to get customisable results. Our methodology relies on an actual detailed and robust representation of the energy systems from the POLES model, a feature unique to Enerdata and enabling an in-depth analysis of the market fundamentals driving the evolution of the price.
The EU ETS carbon price and MSR reserve evolution until 2030
Source: Enerdata, POLES model
We produce Carbon Price Forecasts for a central trajectory derived from our EnerFuture scenarios, but our capabilities go beyond that. We can customise the model, the represented market design to meet your specific scenario requirements, providing data tailored to your business needs.
References
For Carbon Pulse: Since January 2024, Enerdata has been participating in the "Quarterly Carbon Pulse EUA & UKA Price Poll", which benchmarks insights from a dozen institutions. Enerdata provides Carbon Pulse with projections of EU ETS prices for 2024, 2025, 2030, and the average for 2021-2030, based on EnerFuture scenarios. These projections are also accompanied by a detailed analysis from our experts.
Source: Carbon Pulse, POLL: Analysts slash 2024 EU carbon price forecasts, January 23, 2024
For a Major European Utility: Since 2012, Enerdata has been collaborating with this utility under a research partnership to explore future scenarios for the EU Emissions Trading System (EU ETS) and energy systems. This research considers various assumptions, including economic growth, EU policies and regulations, the design of the EU ETS and Market Stability Reserve (MSR). A unique methodology for modeling the EU ETS market has been developed by Enerdata, enabling analysis of the evolution of EU ETS prices and key market design parameters.
For a national government energy agency: Enerdata developed a specific Carbon Market Tool (CMT) model and Marginal Abatement Cost Curve (MACCs) model calibrated to the needs of the client. The results and following consultation were used to design and implement a detailed tool on GHG targets and emissions trading market configurations.
For DECC (UK): Production of energy scenarios, of annual MACCs adapted to the EU ETS sectors for all EU Member States. Analysis and identification of technological options beyond MACCs. Input for “Short-term traded carbon values used for UK public policy appraisal”. Updated short-term traded carbon values used for UK public policy appraisal.
For the World Bank: Enerdata was commissioned to quantitatively assess impacts, of Mitigation Values for ETS linking different jurisdictions using its Evaluate GHG model. Read the Networked Carbon Markets initiative Partners & Strategy Workshop.
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