Registry

Module Specifications

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

Module Title Climate Change & Markets
Module Code EF5108
School DCUBS
Online Module Resources

Module Co-ordinatorSemester 1: Mark Cummins
Semester 2: Mark Cummins
Autumn: Mark Cummins
Module TeacherMark Cummins
NFQ level 9 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None
Description
This module will introduce the full range of Climate Change Risk Management techniques to business and finance professionals, equipping them with the tools to both manage such risks within their organizations, and develop new opportunities within their businesses which are impacted by climate change risk factors.

Learning Outcomes
1. Identify the business risks associated with Climate Change in respect of Commodity, Carbon, and Weather
2. Evaluate those diverse risks
3. Explain the risk management tools available in each area
4. Explain the dynamics of each market, and their inter-relationship
5. Apply these techniques to a series of scenarios



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
Independent learning51Preparation for, and reading after lectures
Group work20Group work on a topic assigned by the Lecturer
Assignment30Individual project on a topic 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
Introduction.
• Why climate change is relevant to business• Commodities, Carbon & Weather: How Climate Change relates.

Kyoto Protocol Flexible Mechanisms: Emissions Trading.
• Cap & Trade concept• Comparison with carbon taxation as method for curtailing carbon emissions• EU Emissions Trading Scheme [History: Phase 1, Phase 2; Future: Phase 3]• Critique of EUETS; Carbon Pricing Dynamics.• Other Trading Schemes (New Zealand, South Korea, Japan & Australia) & North America.

Kyoto Protocol Flexible Mechanisms: Clean Development Mechanism.
• Anatomy of a Project• Review of market (countries/methodologies) Critique of CDM future prospects.

Voluntary Carbon Markets.
• Concept, Origins & History, Market• Major Standards• Critique of the Voluntary market• Green IFSC: ICS & DIVOR.

Forestry Carbon.
• Outline & Rationale• Forestry & Carbon• REDD & REDD+.

Carbon market applications.
• Hedging instruments• Investment & Carbon Funds overview.

Climate Bonds.
• Rationale; Classes of ‘green bond’; securitisation.

Commodity hedging.
• Determining exposure to commodity price risk from climate change• Effective hedging techniques.

Weather Derivatives.
• Definition, and Types of Weather Risk• Range of Weather Derivatives• Pricing weather derivatives• Limitations• Case Studies.

Managing Climate Change Insurance Risk.
• Identifying, Measuring & Monitoring the Risks• Risk, and Mitigation• Climate Change Asset Management• Carbon & Insurance- new product possibilities• Climatewise principles & reporting principles.

Assessment Breakdown
Continuous Assessment50% Examination Weight50%
Course Work Breakdown
TypeDescription% of totalAssessment Date
Group assignmentGroup assignment and presentation30%Week 12
AssignmentIndividual Project20%Week 8
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, Cambridge University Press,
  • B. Hansjürgens, A. Ralf: 2008, Economics and Management of Climate Change: Risks, Mitigation and Adaptation, Springer,
  • H. Geman: 2005, Commodities and Commodity Derivatives: Pricing and Modeling Agricultural, Metals and Energy, Wiley Finance,
Other Resources
6961, Journal, 0, Energy Economics, 6962, Journal, 0, The Energy Journal, 6963, Journal, 0, The Journal of Energy Markets, 6964, Journal, 0, Ecological Economics,
Array
Programme or List of Programmes
GCSTFGrad Cert. in Sustainable Energy Finance
MSEFMSc in Sustainable Energy Finance
Timetable this semester: Timetable for EF5108
Date of Last Revision24-JAN-12
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