Veronika Stolbova: Katalogdaten im Frühjahrssemester 2019

NameFrau Veronika Stolbova
ETH Zürich, ZUE F 12
Zürichbergstrasse 18
8092 Zürich
Telefon+41 44 632 03 19
DepartementManagement, Technologie und Ökonomie

363-1116-00LClimate Finance3 KP2GV. Stolbova
KurzbeschreibungThe course will focus on understanding the impact of climate on the financial system, as well as how financial actors contribute to the transition to a low-carbon economy.
LernzielThe objectives of this course are threefold. First, it aims to provide participants with an overview of the state-of-the-art situation in matters of the impact of climate on finance and the impact of finance on the environment. Second, it introduces current challenges in the fields of sustainable finance, environmental finance and climate finance, and familiarizes participants with existing methods to solve these challenges. Third, it equips participants with knowledge and tools in climate-finance data analysis which could be applied to the real-world cases by calculating climate-related risks and gains for specific market players.
InhaltIt is comprised of three parts:

The first part will give an overview of the relation between finance and climate. It will start with an introduction of the nature of climate change phenomenon and its financial implications. Several types of climate-related financial risks will be considered including physical risks of climate change (financial risks associated with natural disasters), and transition risks (associated with transition to a low-carbon economy, climate policies and regulations, stranded assets). In addition, risks and opportunities associated with the transition to a low-carbon economy will be discussed for institutional sectors (banks, investment funds, pension funds and insurance sector), individual market players, and the real economy.

The second part will allow the participants to acquire knowledge of existing methods and tools in financial climate-related risk assessment including both state-of-the-art academic research methods and current industry practices. It will also discuss instruments available to market players for financing the transition to a low-carbon economy (e.g. green bonds, climate funds, concessional loans) and existing measures of assessing environmental impact of investments. Participants of the course will have an opportunity to apply these methods to real-case portfolios of selected market players.

The third part will address economic and financial effects of climate policies and environmental regulations. It will start with an overview of implemented and widely debated climate policies. Then, it will discuss existing models for development of economic sectors considering various climate policies and greenhouse gas (GHG) emissions targets. Finally, the course will address the impact of climate policies on financial institutions, real economy, individual investors, and provide main arguments on the heated debate on “winners and losers” on the way to decarbonization.
LiteraturThe main reference of the course is the set of lecture notes; students will also be encouraged to read some influential books and academic articles dealing with the issues under study:
[1] “Environmental finance: A guide to Environmental Risk Assessment and financial products”, Labatt, S. and White, R. 2002
[2] “Carbon Finance: the financial implications of climate change”, Labatt, S. and White, R., 2007
[3] “Handbook of environmental and sustainable finance”, Ramiah, V. and Gregoriou, G., 2015
[4] “Greening Economy, Graying Society”, Bretschger, L., CER-ETH Press, Zurich, 2018, 2nd edition
[5] “Natural Resource & Environmental Economics”, Perman, R., Ma, Y., McGilvray, J, Maddison, D., and Common, M., 4th edition, Longman, Essex, 2011
Additional literature:
[6] “Breaking the tragedy of the Horizon - climate change and financial stability”, Carney, M., 2015. Speech given at Lloyd's of London by the Governor of the Bank of England.

[7] “A climate stress-test of the financial system“, Battiston, S., Mandel, A., Monasterolo, I., Schutze, F., Visentin, G., 2017, Nature Clim. Change 7 (4), 283–288.

[8] “Vulnerable yet relevant: the two dimensions of climate-related financial disclosure”, Monasterolo, I., Battiston, S., Janetos, A., Zheng, Z., 2017, Clim. Chang. 145 (3-4), 495–507.

[9] “Rolling the “DICE”: an optimal transition path for controlling greenhouse gases”, Nordhaus, W.D., 1993. Resour. Energy Econ. 15 (1), 27–50

[10] “A Financial Macro-Network Approach to Climate Policy Evaluation”, Stolbova, V., Monasterolo, I., Battiston, S., Ecological Economics, 149, 2018, 239–253