Carbon Risk and Green Finance

Major economies are looking to comprehensive strategies for addressing carbon risks and identifying green finance opportunities. This timely publication offers a cutting-edge analysis of the financial aspects of climate change, including reporting frameworks, carbon footprint calculations, brown taxonomies, green taxonomies, scenario analysis, and stress testing. Scholars, policymakers, and business professionals will find this book informative to gain a comprehensive understanding of the analytical tools supporting efforts to address carbon risks and identify green finance opportunities.

Format: Paperback / softback
Length: 122 pages
Publication date: 01 August 2022
Publisher: Taylor & Francis Ltd

As the world embarks on the path to economic recovery in the wake of the global COVID-19 pandemic, major economies are proactively strategizing to address carbon risks and seize green finance opportunities. The international financial community has been diligently working to develop sophisticated analytical tools that will facilitate comprehensive efforts to mitigate carbon risks and identify sustainable finance avenues. This timely publication presents a cutting-edge analysis of the financial dimensions of climate change. It delves into the most crucial analytical tools, their origins, operational mechanisms, potential advancements, and their integration into a broader strategic framework.

Firstly, reporting frameworks serve as valuable tools for companies to assess their carbon risk management efforts, particularly in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures. By quantifying the greenhouse gas emissions resulting from their operations, carbon footprint calculations enable companies to identify specific carbon risks within their supply chains.

Secondly, brown taxonomies play a pivotal role in categorizing fossil fuel assets in a systematic manner, aiding investors in identifying current carbon risks. These taxonomies classify assets based on their carbon intensity, providing valuable insights into potential financial exposures.

Thirdly, green taxonomies serve as a valuable tool for investors to identify current green finance opportunities by systematically classifying sustainable activities. These taxonomies categorize investments based on their environmental impact, enabling investors to align their portfolios with sustainable investments.

Fourthly, scenario analysis for assets empowers investors to anticipate future carbon risks and green finance opportunities. By conducting comprehensive analysis of various economic, environmental, and social factors, scenario analysis helps investors make informed decisions about their investment strategies.

Lastly, stress testing for liabilities is crucial for insurers and banks to address future carbon risks and enhance their ability to inform policymakers. By simulating potential climate-related events, stress testing enables financial institutions to assess their resilience and develop strategies to mitigate potential financial losses.

In conclusion, the development of sophisticated analytical tools has been instrumental in driving the global efforts to address carbon risks and identify green finance opportunities. This timely publication offers a comprehensive analysis of the financial aspects of climate change, providing valuable insights for scholars, policymakers, and businesses alike. By leveraging these tools, we can work towards a more sustainable and resilient future.

Weight: 260g
Dimension: 234 x 156 (mm)
ISBN-13: 9780367559922