Dubai · Carbon & Commodity Risk
Compliance has a price curve. We help you flatten it.
CarbonHedge FZCO is a commodity risk house based in Dubai. We price, structure and execute hedging across carbon allowances, environmental certificates, energy, metals and freight — so the cost of decarbonising your business stops behaving like a surprise.
Markets
Four markets. One mandate.
Carbon does not sit in isolation. Your allowance cost moves with power, your CBAM liability moves with aluminium, your bunker bill moves with freight. We cover them under a single desk so the hedge matches the actual exposure.
Carbon & Environmental
Compliance allowances, border-adjustment certificates and voluntary credits — priced, hedged and delivered into your registry account.
Carbon markets 02Energy
Power and gas curves across Europe and the UK, LNG, refined products and the biofuel complex that sits behind most transition mandates.
Energy markets 03Metals
Base and ferrous exposure for importers and manufacturers, including the embedded-emissions leg that CBAM now attaches to the same tonne.
Metals markets 04Freight & Shipping
Freight derivatives, bunker fuel and the compliance layer that maritime operators now carry under EU ETS and FuelEU Maritime.
Freight marketsSolutions
From exposure map to settled position.
Most clients come to us with a number they cannot defend: next year’s carbon cost. We work backwards from that number — quantify it, build a policy around it, then execute and settle against it.
Hedging programmes
A written policy, a defined mandate and a rolling execution calendar. Layered coverage that removes the single-decision risk of trying to time the market once a year.
How programmes workStructured & OTC solutions
Swaps, collars, caps and index-linked structures shaped to your delivery profile, budget rate and accounting treatment — not to a standard exchange lot.
Structures we buildPhysical supply & retirement
Sourcing of allowances, certificates and credits, registry transfer into your account, and documented retirement or surrender against the right compliance year.
Delivery & settlementRisk advisory & analytics
Exposure mapping across sites and entities, scenario and sensitivity analysis, CBAM readiness reviews, and board-ready reporting on what is covered and what is not.
Advisory scopeThe regulatory clock
The deadlines that create the exposure.
2026
CBAM enters its definitive period. Importers of covered goods must buy and surrender certificates against embedded emissions.
2027
EU ETS 2 launches, extending allowance pricing to fuels for buildings, road transport and smaller industry.
−2%
FuelEU Maritime GHG intensity reduction already binding on in-scope vessels, tightening to −6% from 2030.
2034
Free allocation for CBAM sectors fully phased out, with the reduction stepping up every year from 2026.
Indicative timeline based on EU legislation as adopted. Scope, dates and calculation methods continue to evolve — we track them as part of every mandate.
Why CarbonHedge
Built for the part of the transition that shows up on the P&L.
Decarbonisation strategy is well served. The treasury consequence of it is not. That gap is where we work.
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Regulatory fluency, not generic commodity coverage
Reading the rulebook is part of the job. Allocation methodology, surrender deadlines, eligibility criteria and the definitions that decide whether a tonne counts.
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One counterparty across correlated risks
Carbon, power, gas, metals and freight under one mandate, so the hedges net against each other instead of being managed by four separate desks.
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Dubai as the working bridge
A time zone that covers the European compliance session and the Asian trading day, and a jurisdiction that sits comfortably between both sets of counterparties.
A worked exposure map
Illustrative annual exposure for a mid-size European cement producer.
- EU ETS allowances, net of free allocation620,000 t
- Electricity, indirect carbon pass-through180 GWh
- Thermal fuel & alternative fuel blend2.4 PJ
- CBAM-exposed clinker imports95,000 t
- Inbound dry bulk freight1.1 m t
Five line items, four markets, one correlated risk. Hedged separately they fight each other; hedged together they can be sized against a single budget rate.
Industries
Where the exposure concentrates.
Every sector meets the carbon price at a different point in its cost base. We start from the mechanism that actually binds you.
Cement, lime & steel
Free allocation is shrinking while CBAM attaches a cost to imported substitutes. Both sides of the trade move at once.
Aviation
EU ETS aviation scope, CORSIA offsetting obligations and a SAF mandate that prices jet fuel in two currencies.
Shipping
EU ETS maritime phase-in alongside FuelEU Maritime intensity targets, pooling and penalty exposure.
Chemicals & refining
Process emissions, hydrogen economics and feedstock switching decisions that hinge on a forward carbon curve.
Power & utilities
Clean spark and dark spreads, PPA structuring and guarantee-of-origin sourcing across multiple delivery zones.
Data centres & technology
Hourly matched clean energy claims, I-REC and GO procurement, and the credibility standard behind each claim.
How we work
Four steps, in order, every time.
No mandate starts with a trade. It starts with an honest measurement of what you are actually exposed to, and a policy you can show a board.
We work through your installations, entities and contracts to build a tonne-by-tonne and MWh-by-MWh picture of what is exposed, over which years, and against which regulatory mechanism. Where data is incomplete, we say so and size the uncertainty rather than hiding it in an average.
Together we agree a budget rate, a minimum and maximum coverage ratio per tenor, the instruments permitted, and who may authorise what. This becomes a short written document that your finance function, auditor and board can all read in one sitting.
Coverage is built progressively against the calendar in the policy, not in a single decision. You see the price, the counterparty and the all-in cost on every layer, and each one is reconciled against the mandate before it is placed.
Physical units are delivered into your registry account and surrendered or retired against the correct compliance year. You receive position and mark-to-market reporting throughout, and the policy is reviewed each year against what the regulation has since become.
Insights
What we are watching.
Short, practical notes on the regulatory and market changes that move our clients’ cost base.
The definitive period, nine months in
What importers have learned about embedded-emissions data quality — and where the certificate cost is landing in practice.
Pricing a market that does not trade yet
How fuel suppliers and large estates are approaching forward cover ahead of the 2027 start date.
FuelEU pooling: a hedge, or a liability?
Compliance pooling moves intensity risk between owners. We look at how that risk should be priced.
Next step
Tell us what you are exposed to.
A first conversation is a structured review of your exposure, not a pitch. If a hedge is not the right answer for you this year, we will say so.