scholarly journals Climate Change in the Capital Markets: A Study of Actively Managed Green Bond Funds

2021 ◽  
Vol 20 (4) ◽  
pp. 38-64
Author(s):  
Emilia Németh-Durkó ◽  
Anita Hegedűs
Keyword(s):  
Climate Change ◽  
Financial Instruments ◽  
Bond Ratings ◽  
Average Performance ◽  
Climate Targets ◽  
Bond Portfolio ◽  
Bond Funds ◽  
Bond Portfolios ◽  
Adjusted Indicators ◽  
Sortino Ratio

In this study, we carried out a performance analysis of green bond portfolios available from public databases for the period between 2017 and 2020. The aim of our research was to obtain empirical proof for the existence of the green premium, which was confirmed by risk-adjusted indicators, i.e. the Sharpe ratio, the M2 ratio and the Sortino ratio. The green premium is the return differential that can be measured between green and conventional financial instruments. According to the literature, investors are willing to forego 1 to 9 basis points of their returns in the interests of financing climate targets, to cover the issuer’s extra costs incurred from green bond ratings and reporting obligations. Our results confirmed that the green bond portfolio underperforms benchmark indices by an average green premium of 2 basis points. We only found a single green bond fund that did not involve a green premium and was capable of achieving a risk-adjusted excess return. Nevertheless, it is noted that all of the indicators used showed that the average performance of green bonds improved steadily each year in the period under review.

Crafting a framework of embodied carbon education, tracking, and reduction for US-based structural engineers

2021 ◽  
Author(s):  
Michael Gryniuk ◽  
Dirk Kestner ◽  
Luke Lombardi ◽  
Megan Stringer ◽  
Mark Webster ◽  
...  
Keyword(s):  
Climate Change ◽  
Global Warming ◽  
Structural Engineering ◽  
Professional Organizations ◽  
Structural System ◽  
Design Decisions ◽  
Collaborative Development ◽  
Climate Targets ◽  
Embodied Carbon ◽  
Structural Engineers

<p>Achieving reductions to embodied carbon, the global warming potential emissions due to the production of materials, is an essential component to meeting science-based climate targets. Studies have shown that a significant portion of embodied emissions within the built environment are due to structural materials. However, many structural engineers are, not only uneducated in the concept of embodied carbon, but also not aware of the role their decisions can make in addressing climate change. This is further exacerbated by a profession that does not have sufficient structural system embodied carbon benchmark information to make important and informed early design decisions. This required the collaborative development of a structural engineering commitment program, SE 2050, that is supported by leading professional organizations to spur the education and transformation of the profession.</p>

scholarly journals Prospects for the development of the «green» bond market (Review)

2020 ◽  
pp. 102-114
Author(s):  
Svetlana Kodaneva ◽  
Keyword(s):  
Climate Change ◽  
Banking Sector ◽  
Bond Market ◽  
Paris Agreement ◽  
Financial Instruments ◽  
Market Review ◽  
Limited Government

In the context of limited government budgets and the capacity of the banking sector, there is a need for new financial instruments to attract investment for the implementation of the Paris Agreement on Climate Change. One of such instruments is «green» bonds. The review analyzes the reasons for the growth of the «green» bond market in different countries and the prospects for its development.

Risking value theory in the political economy of finance and nature

2016 ◽  
Vol 42 (3) ◽  
pp. 330-349 ◽  
Author(s):  
Brett Christophers
Keyword(s):  
Climate Change ◽  
Political Economy ◽  
Financial Innovation ◽  
Value Theory ◽  
The Political ◽  
Index Insurance ◽  
Climate Finance ◽  
Financial Instruments ◽  
Catastrophe Bonds ◽  
Economy Of Nature

Responding to calls for geographers to re-engage value theory in examining the political economy of nature, this article questions the capacity of such theory to grasp nature’s growing representation, valuation and exchange through financial instruments ranging from catastrophe bonds to carbon credits and from green bonds to index insurance. Drawing on and extending recent debates in political economy, it submits that understanding the contemporary nexus of climate change and financial innovation requires incorporating risk into value theory – it requires, that is, ‘risking’ value theory. Parsing the literature on climate finance, the article demonstrates how such risking might be achieved.

scholarly journals The Race for Climate Leadership in the ERA of Trump and Multilevel Governance

European View ◽  
2017 ◽  
Vol 16 (2) ◽  
pp. 251-260 ◽  
Author(s):  
Eva Palacková
Keyword(s):  
Climate Change ◽  
Paris Agreement ◽  
Multilevel Governance ◽  
Good News ◽  
Joint Commitment ◽  
Global System ◽  
Climate Targets ◽  
Challenges And Opportunities ◽  
Other World ◽  
The Eu

President Trump's withdrawal from the Paris Agreement on climate change, albeit predictable, presents both challenges and opportunities for the global system of multilevel governance. Various stakeholders are ready to fill the void, including other world leaders, such as the EU, and in particular Germany; US state actors, such as California; and even cities and businesses. Whatever the outcome, the reaffirmed joint commitment to implementing the climate targets is good news for the planet.

scholarly journals Innovative Financial Instruments and mechanisms for financing forest restoration and mitigating climate change: select cases from India

2012 ◽  
Vol 1 (2) ◽  
pp. 361
Author(s):  
Teki Surayya
Keyword(s):  
Climate Change ◽  
Forest Restoration ◽  
Petroleum Products ◽  
Pollution Level ◽  
Financial Instruments ◽  
National Capital Region ◽  
Degraded Land ◽  
Private Funding ◽  
Savings Bank ◽  
National Capital

Climate Change (CC) is universal concern. One of the causes for CC is degradation offorest. World over every minute 22 hectares forest is degraded. Reckonings suggests thatUS$ 11880, funds must be invested every minute to restore the forest.In India Atmospheric pollution has severed in 90’s because of increasedautomobiles and electronic goods. Green car congress reported level of NO2concentration in Delhi ranged 70 - 102 microgram per cm, in 2005. It is argued that theconsumers are capable of meeting part of cost of CC mitigation. Recent survey (Teki,2008) in National Capital Region revealed that 40% of sample preferred to compensatethrough tax on petroleum products, 22 % in investing in forestry bonds, 57% favouredcompulsory investment in bonds. Awareness rate about climate change was 92%, and 88%favoured both technology transitions and economic sanctions for mitigating CC. Evolvinginnovative financing instruments and mechanisms to finance forest restoration andmitigating CC is important.Timber was considered important contribution of forests, as 2% GDP comes toexchequer. NTFPs now considered equally important for forest restoration as 25 – 55% offorest living people survival comes from NTFPs. Forests have innovative financialinstruments like Eco-tourism, to finance forest restoration. Self reliance apart from thegovernment funding and the private funding. Mobilisation of savings, bank finance,creating/strengthening global carbon fund effectively and financing the substitute sectorsare important for restoration of ecological integration and productivity and economic valueof deforested or degraded land. Objectives of paper are: a) to assess level and impact offorest degradation and forest restoration in India, b) to translate carbon pollution level intomitigating CC, b) awareness level of CC in NCR c) measure willingness of consumers tocompensate for CC, and d) evolve innovative financial instruments and mechanisms tofinance sustainable forest restoration in India.

scholarly journals Implications of Climate Targets at a Local Level: The Study of Mumbai Metropolitan Region, India

2021 ◽  
pp. 95-107
Author(s):  
Sonam Sahu ◽  
Izuru Saizen
Keyword(s):  
Climate Change ◽  
Local Level ◽  
Metropolitan Region ◽  
Policy Makers ◽  
Climate Targets ◽  
Global Target ◽  
Metropolitan Cities ◽  
Nationally Determined Contributions ◽  
Reduce Emissions ◽  
Local Levels

Paris agreement’s 2°C target has set a goal for the entire World to reduce emissions. Simultaneously, the countries which are a party to United Nations Framework Convention on Climate Change are also required to set voluntary national climate targets to reduce emissions. For achieving these targets, mitigations efforts have to be made at every possible level, especially from the metropolitan cities as they are the prominent source of emissions. This raises the requirement of elucidating the meaning of climate targets at local levels. In this context, the present study tries to interpret the global and national targets at the level of a metropolitan region and quantify the amount of emission reduction required. Mumbai Metropolitan Region in India was studied for this purpose. Paris Agreement’s 2°C target as a global target and India’s climate target defined in its Intended Nationally Determined Contributions as the national target were studied. These climate targets were translated into emission budgets for Mumbai Metropolitan Region. Comparing these with Mumbai Metropolitan Region’s emission forecast showed that it requires a 16.8% reduction to meet the national target while a 40% to 47% reduction to meet the global target. The results are significant for policy makers and planners to design focused mitigation policies and support national efforts to govern climate change.

scholarly journals CLIMATE CHANGE AND FISCAL SUSTAINABILITY: RISKS AND OPPORTUNITIES

2021 ◽  
Vol 258 ◽  
pp. 28-46
Author(s):  
Matthew Agarwala ◽  
Matt Burke ◽  
Patrycja Klusak ◽  
Kamiar Mohaddes ◽  
Ulrich Volz ◽  
...  
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Fiscal Sustainability ◽  
The Public ◽  
Climate Targets ◽  
Hedging Strategies ◽  
Net Zero ◽  
The Impact ◽  
Macroeconomic Risks ◽  
Impacts Of Climate Change

Both the physical and transition-related impacts of climate change pose substantial macroeconomic risks. Yet, markets still lack credible estimates of how climate change will affect debt sustainability, sovereign creditworthiness and the public finances of major economies. We present a taxonomy for tracing the physical and transition impacts of climate change through to impacts on sovereign risk. We then apply the taxonomy to the UK’s potential transition to net zero. Meeting internationally agreed climate targets will require an unprecedented structural transformation of the global economy over the next two or three decades. The changing landscape of risks warrants new risk management and hedging strategies to contain climate risk and minimise the impact of asset stranding and asset devaluation. Yet, conditional on action being taken early, the opportunities from managing a net zero transition would substantially outweigh the costs.

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