The energy transition is meant to reduce dependency on fossil fuels, reduce emissions and to bend (and break) climate change. In this exciting shift, traders play a crucial role. In this “Terms We Own,” we deep dive into the world of trading. What traders do, how they trade in renewable energy, and why their activities are invaluable for the energy transition.
Traders, the Engines of the Energy Market: “Traders are individuals, companies, or financial institutions actively participating in financial markets to buy and sell assets.” While traders are often associated with stocks and commodities, they also play a crucial role in the energy trade, including feedstocks for biodiesels.
Of course, we are trading company in reusable raw materials. In the past years we’ve built a stable network of suppliers, buyers and biofuel producers. Our traders step forward making sure renewable product is on the move, buying and selling strict tested feedstocks and verified certificates. The trader makes sure that all requirements and needs of our clients is catered with the best possible supply at the best possible price, thus delivering sustainability with the best amount of green value.
And there is more on why the activities of any traders in renewable energy are so important for the energy transition:
- Price Stability: Traders help stabilize the prices of renewable energy by balancing supply and demand. In effect making it more attractive for businesses -and ultimately for consumers- to transition to sustainable energy.
- Risk Management: Traders assist in managing risks, with thorough analysis of the energy market, giving producers and possible investors more confidence in their significant steps into renewable energy.
- Circular Economy: Our traders provide developers of renewable energy projects with the right quantity and quality renewable waste streams. This saves more than carbon emissions alone. In this way our traders contribute to the circular economy.
- Greening Energy Portfolios: Thanks to traders, energy companies can deliver green energy and biofuel with certified sustainability. This contributes to the shift towards clean energy sources and reduces greenhouse gas emissions worldwide.
- Encouraging Innovation: The fast-moving energy market, driven by traders, encourages innovation. This leads to improved technologies and more efficient renewable energy generation. Every self-respecting trader in our business seeks for innovative product and new means to contribute more and more to the transition.
In summary, traders play a crucial role in speeding up the energy transition towards renewable sources. Their activities not only help the market expand, but also contribute to global efforts to combat climate change. If we want to successfully address the challenges of the energy transition, we must recognize and appreciate the role of all sustainable traders. And at Connex, we are very proud of the goal-getting energizers in our trading team!
