• Executive Summary
• Liquidity Measures
  • Bank Ratios
  • Supply adjusted OI
  • Average Future Volume
• Case for Carbon as an investment class
  • Correlation Analysis
  • Return Volatility
  • Sharpe Ratio
• Secondary Market Analyses
  • CFTC and ESMA secondary market
  • Future Curves in contango
  • Annexures

  List of Tables

• Table 1. Valuation of Futures Market…………06
• Table 2. Short Term Correlation between Carbon Market and Financial Market……………22

List of Figures

• Figure 1. North America Carbon Market Bank (CCA, RGGI and Washington)……7
• Figure 2. North America Carbon Market Bank Coverage Index (CCA, RGGI and Washington)….08
• Figure 3. European Carbon Market Bank (EU ETS and UK ETS)………..…09
• Figure 4. European Carbon Market Bank Coverage Index (EU ETS and UK ETS)…………10
• Figure 5. North American Carbon Market Bank Adjusted Open Interest (CCA and RGGI)……..11
• Figure 6. North American Carbon Market Cap Adjusted Open Interest (CCA, RGGI and Washington)..12
• Figure 7. European Carbon Market Bank Adjusted Open Interest (EU ETS and UK ETS)………..13
• Figure 8. European Carbon Market Cap Adjusted Open Interest (EU ETS and UK ETS)………14
• Figure 9. CCA Futures Traded Volumes……………15
• Figure 10. RGGI Futures Traded Volumes…………………..…16
• Figure 11. WCA Futures Traded Volumes………………………..……17
• Figure 12. EUA Futures Traded Volumes……………………………………………18
• Figure 13. UKA Futures Traded Volumes…………………………………19
• Figure 14. Long Term Correlation Matrix between Carbon Market and Financial Market…………….21
• Figure 15. Year on Year Price Change (Carbon Market and Financial Market)……23
• Figure 16. Volatility (Carbon Market and Financial Market)……24
• Figure 17. Sharpe Ratio (Carbon Market and Financial Market)………25
• Figure 18. CFTC CCA Net Long Positions…………………27
• Figure 19. ESMA EUA Net Long Positions (ICE ENDEX)……..28
• Figure 20. ESMA EUA Net Long Positions (EEX)…….29
• Figure 21. ICE UKA Net Long Positions…………………30
• Figure 22. CCA Future Volume…………….31
• Figure 23. RGGI Future Volume……………32
• Figure 24. WCA Future Volume……………33
• Figure 25. EUA Future Volume…………….34
• Figure 26 UKA Future Volume……………..35
• Figure 27 CCA Future Curve…………………36
• Figure 28 RGGI Future Curve………………37
• Figure 29 Washington Future Curve……..38
• Figure 30 EU ETS Future Curve…………..39
• Figure 31 UK ETS Future Curve………….40