As many countries move forward on domestic and international measures to address climate-change, electric utilities are faced with the prospect of new markets, higher costs, reduced plant values, and new assets in the form of tradable emissions allowances. Many are seeking advice on how the new markets will work, how they will interact with the electricity and fuel markets, and how they should position themselves both to take advantage of new opportunities and to guard against potential risks.

NERA has held workshops on emissions trading for several major electricity generators, and has helped them to model the effects of different allocation mechanisms on their overall costs and revenues. NERA has also provided assistance modelling the effects of emissions trading on input and product markets. For a major energy sector firm in Asia, NERA has assisted in the development of the firm's internal planning for the possibility of carbon trading and the possibility of initiating JI or CDM projects. In the course of the study, NERA reviewed and evaluated the implications of various documents and recent developments relating to carbon trading and JI/CDM projects. NERA also organized a series of meetings between the firm and other organizations (government agencies, firms, trade associations, and brokers) in Europe and the United States with knowledge and experience regarding emissions trading.

Firms taking action now are in position to be first-movers in upcoming policy debates, as well as in developing strategies for succeeding in changing markets.