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climate finance materials 2022

Class Policies

Writing a Paper for this Class
Writing a Paper 2
Example of a climate finance paper

Unit 1: Framing the Class
Why Climate Finance ?
Neil Gunningham, A Quiet Revolution, Central Banks, Financial Regulators and Climate Finance, Sustainability (2020) (this article does a very good job of framing issues in the area of climate finance (especially focusing on regulation))
United Nations, COP26: Together For Our Planet

Lecture: Framing the Class

Unit 2: Fossil Fuels and Divestment
Themes:
– Campaigns may induce legislators/regulators to change the rules
– Changing public opinion about an area might affect how judges think about particular legal issues
– The importance of governance that isn’t about legal rules but about norms of behavior: beyond any potential impact on legal rules divestment is about changing how investors and financial firms behave
– Levels of harm: coal, oil, liquid natural gas
Readings:
Julie Ayling & Neil Gunningham, Non-state Governance and Climate Policy: the Fossil Fuel Divestment Movement, Climate Policy (2015)
Kate J. Neville, Shadows of Divestment: The Complications of Diverting Fossil Fuel Finance 20 Global Environmental Politics 3 (2020)
Mikko Rajavuori, Divestment of Fossil Fuel Assets (January 3, 2020). Forthcoming, Harro van Asselt & Michael Mehling (eds.), Research Handbook on Climate Finance and Investment Law. Edward Elgar 2021., Available at SSRN: https://ssrn.com/abstract=3724464
Auke Plantinga & Bert Scholtens The financial impact of fossil fuel divestment, 21 Climate Policy 107-119 (2021).

Unit 3: Measuring Carbon and Net Zero
Patrick Bolton, Marcin Kacperczyk, Christian Leuz, Gaizka Ormazabal, Stefan Reichelstein, Dirk Schoenmaker, Mandatory corporate carbon disclosures and the path to net zero, CEPR Policy Insight No 111 (2021) (download here)
James Dyke, Robert Watson & Wolfgang Knorr, Climate scientists: concept of net zero is a dangerous trap (Apr. 22, 2021)
Taskforce for Scaling Voluntary Carbon Markets, Phase II Report (Jul. 2021)
International Energy Agency, Net Zero by 2050: A Roadmap for the Global Energy Sector (2021)
Global Cement and Concrete Association (GCCA), GCCA 2050 Cement and Concrete Industry Roadmap for Net Zero Concrete

Unit 4: Securities Laws and Climate Related Financial Disclosures
CSSN Research Report 2022:1: Climate-Washing Litigation: Legal Liability for Misleading Climate Communications, Policy Briefing (January 2022)
IOSCO, Report on Sustainability-related Issuer Disclosures, Report of the Board of IOSCO FR04/21 (Jun. 28, 2021)
IFRS Foundation, Technical Readiness Working Group, Summary of the Technical Readiness Working Group’s Programme of Work (Nov. 2021)
John C Coffee, Jr., The Future of Disclosure: ESG, Common Ownership, and Systematic Risk, Colum. Bus. L. Rev (2021)
SEC Public Statement, Public Input Welcomed on Climate Change Disclosures (Mar. 15, 2021)
Hannah Vizcarra, The Reasonable Investor and Climate-Related Information: Changing Expectations for Financial Disclosures, 50 Environmental Law Reporter 10106 (2020)
GFMA and Boston Consulting Group, Climate Finance Markets and the Real Economy (Dec. 2020) pp 6-43, 104-140.
Communication from the Commission — Guidelines on non-financial reporting: Supplement on reporting climate-related information, C/2019/4490 (Jun. 17, 2019)
EU Taxonomy Regulation (Regulation 2020/852 on the establishment of a framework to facilitate sustainable investment, OJ L 198/13, Jun. 22, 2020)

Additional Reading:
Alliance for Corporate Transparency, 2019 Research Report: an Analysis of the Sustainability Reports of 1000 Companies Pursuant to the EU Non-financial Reporting Directive (pages 1-62)

Unit 5: Asset Management and Sustainable Finance
IOSCO, Recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management FR08/21 (Nov. 2, 2021)
U.S. SEC Asset Management Advisory Committee, Potential Recommendations of ESG Subcommittee Discussion Draft (Dec. 1, 2020)
United Nations Principles for Responsible Investment, An Introduction to Responsible Investment for Asset Owners
EU Regulation 2019/2088 on Sustainability Related Disclosures in the Financial Services Sector, OJ L 317/1 (Dec. 9, 2019)
Stavros Gadinis & Amelia Miazad, Sustainability in Corporate Law (August 20, 2019) (you should be able to download the paper from this page)

SEC Division of Examinations, Review of ESG Investing (Apr. 9, 2021)

Unit 6: Insurance and Climate Change
NYDFS, Guidance for New York Domestic Insurers on Managing the Financial Risks of Climate Change (Nov. 15, 2021)
IAIS, Global Insurance Market Report: The Impact of Climate Change on the Financial Stability of the Insurance Market (Nov. 2021)
Climatewise, Policy opportunities on the road to net zero underwriting: Highlighting three key areas of influence for the insurance industry (March 2021)
Managing environmental, social and governance risks in non-life insurance business, PSI ESG Guide for Non-Life Insurance: Version 1.0 (June 2020)
EIOPA, Insurers’ Sustainability Reporting: EIOPA’s Technical Advice on Key Performance Indicators under Article 8 of the Taxonomy Regulation, EIOPA-21-184 (Feb. 26, 2021)
NAIC Climate and Resiliency Task Force web page (just to know this exists)

Additional Reading
NYDFS, New York Domestic Insurers’ Management of the Financial Risks from Climate Change (Jul. 2021)

Useful Resources:

LSE: Grantham Institute

Cambridge Centre for Sustainable Finance

NASA: https://climate.nasa.gov/

IMF: https://www.imf.org/en/Topics/climate-change