The carbon trading market was designed to incentivize decarbonization and generate needed capital for climate action, yet the extreme price volatility undermines trust, planning, and long-term trading.

Stakeholders, from renewable project developers to large commodity traders, find themselves in a bind: hedging options are underdeveloped, and poor risk visibility creates a persistent fear of sudden losses or missed gains, stifling participation and stunting market growth.

Regulatory uncertainty, limited historical data, and market fragmentation inhibit the development and adoption of tailored risk management systems.

Existing financial tools either don’t exist for carbon products or fail to capture their unique volatility profile, leaving exposures unaddressed.