Carbon Finance
The Financial Implications of Climate Change
By: Sonia Labatt, Rodney R. White
Praise for Carbon Finance "A timely, objective, and informative analysis of the financial opportunities and challenges presented by climate change, including a thorough description of adaptive measures and insurance products for managing risk in a carbon constrained economy." —James R. Evans, M. Eng. P. Geo., Senior Manager, Environmental Risk Management, RBC Financial Group "Climate change will have enormous financial implications in the years to come. How businesses and investors respond to the risks and opportunities from this issue will have an enormous rippling effect in the global economy. Sonia Labatt and Rodney White's insights and thoughtful analysis should be read by all who want to successfully navigate this global business issue." —Andrea Moffat, Director, Corporate Programs, Ceres "In Carbon Finance, Labatt and White present a clear and accessible description of the climate change debate and the carbon market that is developing. Climate change is becoming an important factor for many financial sector participants. The authors illustrate how challenges and opportunities will arise within the carbon market for banking, insurance, and investment activities as well as for the regulated and energy sector of the economy." —Charles E. Kennedy, Director and Portfolio Manager, MacDougall, MacDougall & MacTier Inc. "Climate change is the greatest environmental challenge of our generation. Its impact on the energy sector has implications for productivity and competitiveness. At the same time, environmental risk has emerged as a major challenge for corporations in the age of full disclosure. Carbon Finance explains how these disparate forces have spawned a range of financial products designed to help manage the inherent risk. It is necessary reading for corporate executives facing challenges that are unique in their business experience." —Skip Willis, Managing Director Canadian Operations, ICF International "In this timely publication, Labatt and White succeed in communicating the workings of carbon markets, providing simple examples and invaluable context to the new and changing mechanisms that underpin our transformation to a carbon-constrained world. Carbon Finance will be the definitive guide to this field for years to come." —Susan McGeachie, Director, Innovest Strategic Value Advisors, Graduate Faculty Member, University of Toronto; and Jane Ambachtsheer, Principal, Mercer Investment Consulting, Graduate Faculty Member, University of Toronto
AI Overview
"Carbon Finance: The Financial Implications of Climate Change" is a book written by Sonia Labatt and Rodney R. White, two environmental finance experts from the University of Toronto. The book provides a comprehensive analysis of the financial opportunities and challenges presented by climate change, focusing on the relationship between climate change and carbon finance.
Key Themes
- Carbon Market and Financial Products: The book delves into the development and workings of the carbon market, including the role of financial products designed to help address climate change.
- Climate Change Metrics: It examines the metrics of carbon cycle change, helping readers understand the complexities of carbon dioxide and its equivalents.
- Risk Transfer Measures: The authors discuss various risk transfer measures, such as those implemented under the Kyoto Protocol, which aimed to mitigate greenhouse gas emissions.
- Corporate Climate Risk Analysis: The book explores how carbon finance plays a crucial role in corporate climate risk analysis, helping businesses navigate the financial implications of climate change.
Plot Summary
The book is structured to provide a clear and accessible overview of the economic aspects of climate change. It begins by explaining the fundamental concepts related to carbon finance, including the metrics of carbon cycle change. The authors then move on to discuss the development of the carbon market, its fragmentation, and the challenges it poses for investors. The second half of the book focuses on the workings of the carbon market, including the trading hubs that have developed in Europe and other regions. The authors also highlight the instability and high-risk nature of this market, though they suggest that this may change as the market evolves.
Critical Reception
Positive Reception:
- Timely and Objective Analysis: The book is praised for its timely and objective analysis of the financial implications of climate change.
- Comprehensive Coverage: It is noted for providing a clear assessment of the carbon market and financial products being developed to address climate change.
- Useful for Professionals: The book is recommended for financial and insurance professionals, as well as business leaders, due to its concise and competent description of the capitalist mechanisms aimed at combating climate change.
Critical Points:
- Lack of Critical Analysis: Some reviewers have noted that the book lacks critical analysis, particularly for journalists who have been covering the economic aspects of climate change for years. The first half of the text may seem repetitive for those familiar with the subject matter.
Overall, "Carbon Finance" is a valuable resource for understanding the financial implications of climate change and the mechanisms being developed to address it. While it may lack critical depth, it provides a comprehensive and accessible overview of the subject matter.