Climate Finance (122N1)

15 credits, Level 7 (Masters)

Spring teaching

The module provides a foundation in economic theory for carbon pricing, and a detailed understanding of carbon markets. Initially, we will distinguish between climate finance and sustainable finance, as the latter is a broad category of topics, including climate finance. In addition, the module will provide insights in the practice of carbon market design, its problems and the proposed solutions. Empirical methods for appraising the effectiveness and efficiency of carbon markets as policy instruments for mitigating climate change will be discussed. Moreover, we will explore the investment performance of renewable energy funds, green bonds and we will analyse green revenues models. The group assessment of the module is related to the green revenues model.

Data from FTSE green revenue dataset will be given to students and they will be asked to analyse them and provide investment solutions. We will also cover the role of different participants within emissions trading schemes, the implications of the Paris Agreement and we will discuss the recommendations of IPCC for climate change mitigation. Particularly, the module will cover topics such as sustainable finance and climate finance, environmental policy, energy finance, carbon markets, green bonds, climate risk analysis, low carbon investment portfolio, environmental and financial performance, and green revenues data model.


67%: Lecture
33%: Seminar


30%: Coursework (Group submission (written))
70%: Examination (Take away paper)

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 33 hours of contact time and about 117 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2023/24. However, there may be changes to these modules in response to COVID-19, staff availability, student demand or updates to our curriculum. We’ll make sure to let our applicants know of material changes to modules at the earliest opportunity.