Climate finance is defined by the United Nations Framework Convention on Climate Change (UNFCCC) to be ʺlocal, national, or transnational financing ‑ drawn from public, private, and alternative sources of financing ‑ that seeks to support mitigation and adaptation actions that will address climate change.ʺ It is about investments that governments, corporations, and households have to undertake to transition the worldʹs economy to a low‑carbon path, to reduce greenhouse gas concentrations levels, and to build resilience of countries. Students get to know concepts from climate finance research and are introduced to the current state of the financial industry, politics, and regulation. They gain a detailed understanding of how capital markets price climate change and the accompanying transition process into various assets, e.g., equity, (green) bonds or real estate. They learn strategies to develop climate‑efficient portfolios, risk management and asset allocations. Students obtain an overview of climate‑related financial products, derivates and carbon emission trading. They deal with current issues for retail and institutional investors such as, e.g., divestment and engagement strategies, carbon bubble and stranded assets.
This lecture is organized as a block course: five days on campus, four online exercise dates, one online exam preperation date, and one final online exam. The exercise dates will be used to discuss assignments that are offered to deepen the understanding of the concepts and to enable a more intensive examination of the course contents.
Learning objectives: 1. Students are able to critically reflect the current impact of climate change on society, economy and financial market. 2. Students understand the physical and transitory opportunities and risks of climate change across different asset classes and capital market participants. 3. Students understand and apply key concepts to asset allocation, risk management and portfolio analysis to construct climate efficient investment solutions. 4. Students comprehend the empirical challenges in the measurement of the relationship between climate change, carbon risk and financial performance. 5. Students develop an understanding of how climate policy, green investments and carbon pricing influence companies and financial actors.
This lecture is organized as a block course: five days on campus, four online exercise dates, one online exam preperation date, and one final online exam. The exercise dates will be used to discuss assignments that are offered to deepen the understanding of the concepts and to enable a more intensive examination of the course contents.
Learning objectives: 1. Students are able to critically reflect the current impact of climate change on society, economy and financial market. 2. Students understand the physical and transitory opportunities and risks of climate change across different asset classes and capital market participants. 3. Students understand and apply key concepts to asset allocation, risk management and portfolio analysis to construct climate efficient investment solutions. 4. Students comprehend the empirical challenges in the measurement of the relationship between climate change, carbon risk and financial performance. 5. Students develop an understanding of how climate policy, green investments and carbon pricing influence companies and financial actors.