Climate Economics und Green Finance - (F) - Q4

Participation Prerequisites

Students are assumed to have undergraduate-level knowledge of microeconomics or business economics. Students should have completed the following mandatory MIF courses: Advanced Corporate Finance, Economics of Financial Markets and its Institutions.

Course Content

Climate change is rapidly transforming the global economy and redefining how financial markets assess risk and opportunity. As the world moves toward a net-zero future, trillions of dollars will need to be invested in new technologies, infrastructure, and business models. Climate Economics and Green Finance examines how this transition affects firms, investors, and policymakers, and how financial markets can both drive and respond to climate-related challenges.

The course provides a concise overview of the financial implications of climate change. The aim of the course is to equip students with the tools to understand how sustainability considerations shape investment decisions, corporate strategies, and regulatory developments. It is relevant for students interested in climate issues as well as those pursuing traditional careers in finance who need to understand how climate forces are reshaping the landscape of modern finance.

The course is case-based. Students are required to prepare each case in advance and come ready to share and discuss their perspectives in class.

Intended Learning Outcomes and Competencies

Upon completion of the course, you will be able to:

1.       Understand the economics of climate change and related climate regulations, including carbon taxes, emission trading systems, and carbon offsets.

2.       Critically evaluate firms’ transition risks and opportunities, and understand the impacts of physical climate risks.

3.       Assess investment approaches, such as divestment, shareholder activism, and ESG engagement, as well as their effects on asset prices.

4.       Understand how financial markets can support the transition to a net-zero economy, including through fixed income instruments.

5.       Learn how financial institutions, such as banks, align their strategies with climate commitments.

Instruction Type

Presence

Form of Examination

Literature

Mandatory readings:

1.       This course manual

2.       Cases and articles posted on Moodle before each lecture

Recommended readings:

Usher B., 2024. Investing in the Era of Climate Change. Columbia University Press.

Other recommended articles will be posted on Moodle.