Module: Climate Change & Markets

Module Specifications.

Current Academic Year 2024 - 2025

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Date posted: September 2024

Module Title	Climate Change & Markets
Module Code	EF5108 (ITS) / FBA1000 (Banner)
Faculty	DCU Business School	School	DCU Business School
Module Co-ordinator	-
Module Teachers	-
NFQ level	9	Credit Rating	5
Pre-requisite	Not Available
Co-requisite	Not Available
Compatibles	Not Available
Incompatibles	Not Available

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

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	24	The lecturer will present the essential ideas and core concepts pointing students towards resources where they can get further information
Independent Study	51	Preparation for, and reading after lectures
Group work	20	Group work on a topic assigned by the Lecturer
Assignment Completion	30	Individual 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 Assessment	0%	Examination Weight	0%

Type	Description	% of total	Assessment Date
Course Work Breakdown
Group assignment	Group assignment and presentation	30%	Week 12
Assignment	Individual Project	20%	Week 8

Reassessment Requirement Type
Resit arrangements are explained by the following categories: Resit category 1: A resit is available for both* components of the module. Resit category 2: No resit is available for a 100% continuous assessment module. Resit category 3: No resit is available for the continuous assessment component where there is a continuous assessment and examination element.
* ‘Both’ is used in the context of the module having a Continuous Assessment/Examination split; where the module is 100% continuous assessment, there will also be a resit of the assessment
This module is category -

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,