The authors investigate the tail sensitivity of US industry returns in relation to changes of carbon-driven climate risk, finding that tail sensitivities rise with the greenhouse has emissions of an industry.
The authors propose a means to capture climate change risk exposure by combining a green factor with typical frameworks used for explaining stock returns.
Price adjustments will depend on individual counterparties’ carbon footprints
A framework to measure banks’ costs associated with carbon emissions is proposed
Throwing green into the mix: how the EU Emissions Trading System impacted the energy mix of French manufacturing firms (2000–16)
This paper investigates links between environmental policy and production decisions, with a focus on firms' energy mixes.
Fledgling market is still debating fundamental concepts, but experts remain hopeful about its ultimate utility
Uncertainty on how governments plan to curb emissions adds political dimension to credit quality assessments
As finance looks to shape decarbonisation in its own image, critics wonder if its efforts are misplaced
ZE PowerGroup Inc. explores how newly launched emissions trading systems, recently established task forces, upcoming initiatives and the new US President, Joe Biden, and his administration can further the drive towards tackling the climate crisis
State fund and MIT’s business school look to improve ESG data and to reflect all investors’ views
Carbon pricing paths to a greener future, and potential roadblocks to public companies’ creditworthiness
In this paper, the authors introduce a valuation-based approach to estimate how energy transition risk may impact the creditworthiness of public companies globally within the next thirty years.
BofA, Citi and Wells Fargo looking to adopt emissions standard popular with EU lenders
Higher carbon prices would trigger widespread industry defaults, says agency research unit
Government and business must avert disorderly move away from fossil fuels, says Geneva Association’s Maryam Golnaraghi
Increased climate policy will put more oil and gas assets under threat of stranding
Geopolitical tensions introduced extreme volatility to many commodity markets in 2018, while environmental markets began to take off
Reliable measures still some way off, banks admit
EU reforms trigger carbon rally set to last through 2018
Utilities may unwind hedges amid uncertainty over EU emissions market
Specialist knowledge of carbon market is crucial to company's success
China and South Korea emissions schemes show promise, say industry groups
Emissions prices are the wrong metric of success, he argues