OFIN 3135A - Sustainable finance and future environmental markets

This course will provide an overview of sustainable finance: what it is, what categories it encompasses, and how it is about to shift from a niche market to mainstream finance via an ambitious EU legislative agenda.

A distinction will be made between traditional sustainable finance and new market mechanisms and financial instruments, from carbon markets to off-set markets for ecosystem services and the growing role of private insurers in insuring climate catastrophe.

Based on their design and legislative framework, we will analyse the assumptions, moral and societal questions underlying these new markets. Using lessons from commodity derivatives markets and existing environmental market schemes, we will then assess to what extent they will be able to meet their stated environmental, social and economic objectives.

A few innovative green financial instruments will be dissected and examined for illustrative purposes.

Basic knowledge of financial markets

6 seminars of 2h = (12h).

Credits: 2. Continuous assessment grade.

Class participation

Short essay analysing a text