Market Advisory Group provides a range of services to support your business to effectively engage in the Australian carbon and renewables markets.
- Carbon market fundamentals and dynamics
- Carbon procurement strategies
- Carbon risk and mitigation strategies
- Carbon market due diligence
- Establishing a trading desk
- Government policy advice
Carbon market fundamentals and dynamics
With Raphael Wood’s background in the design, implementation and trading of the Australian carbon markets, Market Advisory Group can provide highly informed, independent advice on the structural fundamentals and short medium and long term supply and demand dynamics. Before transacting in the markets, there is a range of factors that must be taken into account to understand the supply and demand dynamics of the market, its risks and opportunities, to ensure you maximise returns from any trades. Market Advisory Group can tell you the things you must know and assist in tailoring market solutions to meet any need or issue.
Carbon procurement strategies
With experience on both sides of the carbon markets, Market Advisory Group can provide a range of procurement strategy advice to compliance and voluntary buyers of domestic ACCUs and international carbon units. The range of services include but are not limited to;
- High-level procurement strategy briefs that outline the main ACCU supply sources.
- Spot Market, Long Term Carbon Purchase Agreements (CPAs), ERF Contracts and derivatives.
- Methodology reviews to analyse potential volumes, issues and risks of each methodology under the Carbon Farming Initiative (ERF) to ensure your organisation has a sufficient level of understanding of the sector to answer threshold questions, increase internal buy-in and appropriately design a procurement strategy.
- Detailed analysis of the Marginal Abatement Cost Curve (MACC) and Long Run Marginal Costs (LRMC) of abatement under all methodologies in Australia (and internationally) to assist in planning future procurement
- Detailed procurement strategies, counterparty negotiations and due diligence on acquisitions.
Carbon risk and mitigation strategies
The project originator (developer) industry has been evolving since the Carbon Pricing Mechanism came into effect in 2011. As in any regulated market, there is a normal level of variation in counterparty risk, project risk, methodology risk and of course, an ever-changing political and regulatory risk. Market Advisory Group can analyse your carbon market risk and design and implement risk mitigation strategies across the counterparty, regulatory and financial sectors. In many cases the risks of any strategy may not be entirely self-evident, requiring an independent, informed advisor to ensure risks are identified and managed.
Carbon market due diligence
Counterparty risk and due diligence associated with mergers and acquisitions in the sector require a specialist carbon due diligence advisor. Market Advisory Group is one of the only truly independent carbon market advisors that can provide independent expert advice on the risk inherent to any counterparty or carbon market participant.
Establishing a trading desk
Any entity with exposure to either the supply or demand side of environmental markets will benefit from having a well structured and governed trading strategy to ensure transactions are correctly risk assessed and valued. Market Advisory Group can assist in developing your trading strategy to enable the highest level of value extraction.
Government policy advice
Market Advisory Group, based in Canberra, has strong working relationships with all levels of the federal government. We can assist you in interactions with the Clean Energy Regulator, the Departments of Environment, Resources, Agriculture and Foreign Affairs & Trade. Market Advisory Group also has close relationships with State Governments.
Knowing who to talk to and when, Market Advisory Group can achieve effective, quick handling of government interactions, process and procedures.