Liquidity could be issue in standalone UK carbon market: trader

摘要

market set to start in 2021 could cause issues linked to utilities’ need to hedge forward power sales, a senior carbon trader said June 9. Potential problems around liquidity and hedging could arise if the UK’s carbon market is not linked to the EU Emissions Trading System, according to senior carbon trader at UK-based market advisory company Redshaw Advisors, Tom Lord. “I think a link is in everyone’s best interest. The main risk is that if we don’t get a link, the UK will have a small, thin market, and liquidity could be a real issue,” Lord said.