Climate Finance

Catalog description

The course in Climate Finance covers core finance concepts with a focus on their application to climate-related challenges. It introduces a set of tools for analyzing the investment and financing decisions of individuals and firms, including the time value of money, valuation of bonds and stocks, the cost of capital, determining cash flows, net present value (NPV) decision-making, and firm valuation. These ideas are applied to climate finance-relevant problems such as the pricing of 'Green' bonds and their role in financing projects that have a positive environmental impact and the impact that ESG-related considerations have on the cost of capital. The basic theoretical underpinnings of the various topics are discussed as they are necessary for competent financial analysis. Because of the practical importance of the material and as an illustration of the relevant theory, several examples and cases are discussed throughout the course. This course is for MBCS students.