UBS is planning to roll out risk management tools in European natural gas and carbon emissions, Reuters reports. The Swiss investment bank’s fixed income, currencies and commodities division is seeking to offer the service by the end of 2011, adds Commodities Now Online.

The bank has selected BP as the preferred hedging counterparty for these transactions. The move will allow the bank’s clients to hedge risk in European Emission Certificates trading and European gas markets, such as U.K.’s National Balancing Point and the Dutch Title Transfer Facility.

Click here for the story from Reuters.

Click here for the additional coverage from Commodities Now Online.