Registry

Module Specifications

Current Academic Year 2012 - 2013
Please note that this information is subject to change.

Module Title Carbon Finance
Module Code EF5105
School DCUBS
Online Module Resources

Module Co-ordinatorSemester 1: Mark Cummins
Semester 2: Mark Cummins
Autumn: Mark Cummins
NFQ level 9 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None
Description
This module will provide students with a comprehensive treatment of carbon finance within the context of the climate change agenda. The key global carbon markets will be discussed, including the European Union Emissions Trading Scheme, Clean Development Mechanism and Joint Implementation. Practical insights into carbon trading and risk management activities will be outlined, with particular focus on each of the spot, futures and options markets. The latest trends in renewable energy investment will be presented. The module will also discuss global efforts in mobilising finance in the green sector and the role of international carbon funds in particular. The module will investigate the integration of the carbon markets with the broader energy and commodity markets. The module will afford the opportunity to study the growing academic and industry literature on carbon markets.

Learning Outcomes
1. Understand the issue of climate change, and global mitigation and adaptation climate change policy.
2. Distinguish between the European Union Emissions Trading Scheme, Clean Development Mechanism and Joint Implementation markets.
3. Understand the key carbon exchanges and products within the EU.
4. Appreciate the current trends in renewable energy investment and the role of carbon funds in mobilising green finance.
5. Appreciate the link between carbon markets and the broader energy and commodity markets.



Workload Full-time hours per semester
Type Hours Description
Lecture24The lecturer will present the essential ideas and core concepts pointing students towards resources where they can get further information.
Lecturer-supervised learning (contact)12Exercises involving review of practical empirical work.
Independent learning44Preparation for, and reading after lectures.
On-line learning12Moodle: Exercises and readings
Assignment33Individual projects on topics approved by the Lecturer
Total Workload: 125

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities
Learning Activities.
Each topic will be first introduced in a formal lecture setting. Students will be introduced to the growing academic and industry literature on carbon markets. The assignment will provide students the opportunity to research in depth the dynamics of the carbon markets..

Introduction.
Introduction to climate change; global and European Union climate change policy - mitigation and adaptation; emissions reduction objectives; role of carbon markets; pricing carbon; supporting investment in sustainable energy and climate change activities..

Kyoto Protocol: Market-Based and Project-Based Mechanisms.
The European Union Emissions Trading Scheme (EU ETS) as the key market-based mechanism of European Union climate change policy; EU ETS market structure and key players; the Clean Development Mechanism (CDM) as a key global project-based mechanism; CDM market structure and key players; Joint-Implementation – market structure and key players; international policy development and the post-2012 outlook..

Carbon Trading and Risk Management.
Overview of trading and risk management in carbon markets; key carbon credits: European Union Allowances (EUAs), primary and secondary Certified Emissions Reductions (pCERs and sCERs), and Emission Reduction Units (ERUs); main global carbon exchanges; over-the-counter (OTC) carbon markets; spot, futures and options markets..

Renewable Energy Investment and Carbon Finance.
Global transactions in renewable energy; investment by asset class; developing versus developed country investment; investment by sector - wind, solar, bio, marine, etc; asset finance; small-scale projects; public markets; venture capital and private equity; R&D; M&A; investment sources; carbon financing and carbon funds..

Emissions and Energy Market Interactions.
Emissions market interactions - EUA and CER markets; emissions-energy market interactions - oil, gas, coal and power markets; application of econometric techniques to investigate interactions..

Assessment Breakdown
Continuous Assessment50% Examination Weight50%
Course Work Breakdown
TypeDescription% of totalAssessment Date
AssignmentIndividual Project25%Week 6
AssignmentIndividual Project25%Week 12
Reassessment Requirement
Resit arrangements are explained by the following categories;
1 = A resit is available for all components of the module
2 = No resit is available for 100% continuous assessment module
3 = No resit is available for the continuous assessment component
This module is category 1
Indicative Reading List
  • D. Ellerman, F. Convery, C. de Perthuis: 2010, Pricing Carbon: The European Union Emissions Trading Scheme, 1st Ed., Cambridge University Press,
  • B. Hansjürgens, A. Ralf: 2008, Economics and Management of Climate Change: Risks, Mitigation and Adaptation, Springer,
  • S. Labatt, R. R. White: 2007, Carbon Finance: The Financial Implications of Climate Change, Wiley,
  • J. Chevallier: 2011, Econometric Analysis of Carbon Markets: The European Union Emissions Trading Scheme and the Clean Development Mechanism, Springer,
Other Resources
6945, Annual Report, World Bank, 0, State and Trends of the Carbon Markets, 6946, Annual Report, United Nations Environment Programme, 0, Global Trends in Renewable Energy Investment,
Array
Programme or List of Programmes
MITBMSc in Investment, Treasury & Banking
Timetable this semester: Timetable for EF5105
Date of Last Revision16-JAN-12
Archives:
DCU
Address
The Helix
3U
NDP
Government
EU
Disclaimer | Privacy