Green Finance

• Credit value: 15 credits at Level 6
• Convenor: Dr Kenjiro Hori
• Assessment: a two-hour examination (100%)

In this module we will tackle the important subject of energy transition and green finance from several perspectives.

Firstly, we review energy transition, from coal and other fossil fuels to renewables, and the unique difficulties it poses, particularly in the UK. Secondly, markets in metals and rare earths, required in large quantities for solar and wind energy, will be discussed. Thirdly, with ESG scores today being as important as, or more important than, credit scores in selections by portfolio and pension fund managers, green bonds, commodity-linked bonds and catastrophe bonds will be studied. Finally, some elements of the very complex subject of carbon pricing will be discussed.

Indicative syllabus

• Climate change
• Gas and electricity markets
• Credit ratings and ESG ratings
• Role of central banks and international organisations
• Sustainable agriculture
• Carbon pricing and international treaties
• Inter-generational considerations

By the end of this module, you will be able to:

• explain how commodity and energy markets work
• discuss the latest issues relating to sustainable agriculture
• explain how credit ratings and ESG ratings work and are applied in portfolio management
• explain what Green Bonds and Catastrophe Bonds are and how they can be used
• explain how climate exchanges operate.