From Climate Science to Climate Finance Course

COURSE OBJECTIVES

Climate change is no longer hypothetical. Scientific evidence is clear about the fact that temperatures are rising at an unprecedented rate and that it is most likely due to human activity since the mid-20th century. To be able to limit the increase in global average temperature to 2°C above pre-industrial levels at most, all industries will have to take investment decisions that will alter the current path. Delaying emissions reductions will lead to long lasting implications. Facilitating the transition towards a low-carbon economy requires a broad array of new financial instruments and innovations that will have far-reaching implications for markets, corporations, intermediaries, and investors, so as to ensure that long-term capital is committed to address long-term environmental needs. It also requires a new breed of finance professionals who have the skills and appetite to enhance financial analysis with a deep understanding of environmental, as well as social and governance, factors. In this context, this course is intended to provide an in-depth introduction to the science, economics and finance of climate chance, with a focus on the financial instruments and investment strategies that can be applied in the context of increasing climate risks.

LEARNING OUTCOMES

After having taken this course, participants will be able to/are expected to know or understand (knowledge-based outcomes)

• LO1 The origins of climate change and the ways currently considered to stabilize greenhouse gas concentrations
• LO2 The consequences of financial decisions from a climate change perspective

More specifically, participants should be able to (skill- and competency-based outcomes)

• L03 Measure carbon risk exposure at the portfolio level
• LO4 Understand the trade-offs involved in the construction of low carbon investment portfolios

COURSE CONTENT

1. Scientific evidence on climate change and its anthropogenic origin
2. Introduction to the analysis of carbon emissions and carbon cycles
3. Energy sources and the transition to a low carbon economy
4. Carbon regulation, carbon taxes and carbon markets
5. Climate change and financial disclosure
6. Measuring carbon footprint for companies and portfolios
7. Risk and return trade-offs involved in low carbon investing