The world is currently going through a major shift toward clean energy, triggered by concerns over climate change, depleting resources, and energy security. The energy transition is a massive undertaking, requiring significant investment and a long-term vision. However, as with any transition, there are challenges and uncertainties, and this is where hedging and trading come into play.
Hedging is a risk management strategy that involves taking positions in the market that offset the risks of an existing position. Hedging can be done using a variety of instruments, including futures, options, and swaps.