TY - THES

T1 - CTRM Software Module - Emissions Trading

AU - Perzinger, Alexander

N1 - no embargo

PY - 2024

Y1 - 2024

N2 - Emission trading, also referred to as a cap-and-trade system, is a key strategy for mitigating climate change. This approach involves governments setting a limit on permissible emissions and distributing tradable permits to businesses. By creating a market for these permits, companies are incentivized to reduce their emissions to maintain profitability. This market-based system promotes efficient emission reductions as businesses can adapt their strategies accordingly. With the potential to incorporate new sectors and innovative financial instruments, emission trading holds promise for curtailing global warming in the future. This thesis aims to develop a comprehensive framework for effectively registering emissions certificate transactions within an established commodity trading and risk management (CTRM) software platform. The objective is to create a modular system capable of accommodating bilateral trading. As this project marks the company's initial foray into emissions as a tradable commodity, a thorough investigation of emission trading fundamentals, wholesale market structures, pricing mechanisms, and hedging options has been conducted. This robust theoretical foundation will underpin the development of the proposed module.

AB - Emission trading, also referred to as a cap-and-trade system, is a key strategy for mitigating climate change. This approach involves governments setting a limit on permissible emissions and distributing tradable permits to businesses. By creating a market for these permits, companies are incentivized to reduce their emissions to maintain profitability. This market-based system promotes efficient emission reductions as businesses can adapt their strategies accordingly. With the potential to incorporate new sectors and innovative financial instruments, emission trading holds promise for curtailing global warming in the future. This thesis aims to develop a comprehensive framework for effectively registering emissions certificate transactions within an established commodity trading and risk management (CTRM) software platform. The objective is to create a modular system capable of accommodating bilateral trading. As this project marks the company's initial foray into emissions as a tradable commodity, a thorough investigation of emission trading fundamentals, wholesale market structures, pricing mechanisms, and hedging options has been conducted. This robust theoretical foundation will underpin the development of the proposed module.

KW - Emissionshandel

KW - EU ETS

KW - ComFin

KW - Software

KW - Emission trading

KW - EU ETS

KW - ComFin

KW - Software

M3 - Master's Thesis

ER -