Energy transition and derivatives – challenges and opportunities in light of the Draghi Report
4 October 2024

The Draghi Report highlights key issues such as distortions in the energy derivatives market and calls for regulatory changes, including revising position limits and the ancillary activity exemption. Additionally, it emphasizes the increasing importance of financial instruments such as Power Purchase Agreements (PPAs) and Contracts for Difference (CfDs) to hedge energy price volatility.

In this edition, we explore:
• The regulatory landscape in the energy derivatives market
• Opportunities for businesses to navigate volatility and support decarbonization efforts
• Insights on the role of energy derivatives

Our Debt Capital Markets Focus Team breaks it all down here.