Scheduled to commence on January 1, 2005, the EU-ETS caps emissions of carbon dioxide (CO2) -- and later all greenhouse gases-- from approximately 15,000 facilities across the EU. The scheme aims to achieve overall reductions in CO2 at a minimal cost by enabling installations with high costs of reducing emissions to trade emissions credits with those whose costs are lower. SunGard's EU-ETS module for ZaiNet will accommodate both the initial trading of CO2 emissions allowances and the subsequent trading of other greenhouse gases as they come into the scheme.
The risks associated with the EU-ETS include both price and operational risks which require compliance departments to establish new processes. ZaiNet EU-ETS provides the tools to manage these price and operational risks within a single, integrated database and common trade capture framework. This helps traders, risk managers and compliance officers to manage emissions allowances alongside other energy transactions.
The new EU-ETS functionality in ZaiNet allows for the capture of both the forecasted and actual carbon emissions as well as the allowances trades to facilitate the required trade registry reporting. The application supports the upload of emissions forecasts from third party models. The two tier trade capture architecture allows trade entry through the ZaiNet Energy Trade Blotter. Flexible reporting tools support the yearly surrender and true up processes of the scheme.
Matt Mandalinci, president of SunGard Energy Systems, remarked that "ZaiNet EU-ETS builds on the well-established ZaiNet energy trading and risk management solution with key new features including emissions profiles for forecasting and trade capture; trade registry account setup and management; and reporting for allowances surrender and registry compliance. ZaiNet EU-ETS addresses a significant environmental issue, helping energy companies, utilities, and industrial firms to become compliant with the EU-ETS emissions requirements coming into effect on January 1, 2005."