Category: Insights

The energy transition’s impact on global markets and trading

  • 2 min read

The energy transition is not just about moving to low-carbon systems to power our society. It will also involve significant changes to energy markets. 

Oil and gas, for example, could one day be replaced by currently exotic fuels such as low-carbon hydrogen or renewable ammonia across many industrial power applications. The nature of electricity markets, meanwhile, is already shifting as a proportion of consumers become prosumers and start to sell as well as buy energy over the network. The market is seeing the emergence of new players, such as aggregators and flexible capacity providers.

The carbon markets look set to play a critical role in enabling clean technology investments. In Europe, these market changes have gained impetus over the last year as the European Commission has pushed for more aggressive decarbonisation targets. 

The changes underway are just the beginning of a wider shift towards a more circular economy that will need to take place if the world is to keep carbon emissions in check. The task ahead is too great to be addressed through changes in energy production alone. 

In a joint whitepaper, Reuters and financial technology provider Refinitiv have produced an overview of how these important trends could affect market fundamentals from commodity pricing to geopolitical leadership.

The whitepaper will explore a number of the key factors regarding energy transition, including:

  • Utilising the existing - fossil fuel companies can leverage existing infrastructure, technologies, and expertise to not only switch to but embrace decarbonising the energy sector.
  • Tech and data advancements - the role newer technology and data capture, analysis and reach can play in supporting the energy transition.
  • Energy commodity price impact – what is happening currently, how will this change and what are the consequences of this e.g., topics like drilling limits, higher forecasts, and new policies.
  • The geopolitical shift and the results this has across all energy and power markets.
  • The potential obstacles that could affect the transition, red flags, and anything on the horizon.

Download the full whitepaper

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