AEM 4090 - Environmental Finance and Markets

(CU-CEL, CU-SBY)

Spring. 3 credits. Student option grading.

Prerequisite: AEM 2240, AEM 2225, or equivalent.

J. Tobin.

This course considers the ways in which the tools of finance are used to address environmental challenges and how market mechanisms can be used to ensure the long-term sustainability of ecosystems. Following an introduction to the prevailing environmental policy framework, the course explores the uses of such products as debt-for-nature swaps, green bonds, structured notes, and environmental impacts bonds, and illustrates both their potential and their limitations through a review of market transactions. The course also explores how investment decisions can influence environmental outcomes and the role that sustainable asset management strategies can have in achieving desired conservation objectives.

Outcome 1: Understand how the tools of finance can be used to address societal challenges such as ensuring the long-term sustainability of ecosystems.

Outcome 2: Recognize opportunities to leverage the power of the investment markets to achieve particular outcomes by identifying potential cash flows inherent to preserved or sustainably-managed ecosystems.

Outcome 3: Critically examine proposed investment blueprints and assess their potential to achieve desired conservation outcomes.

Outcome 4: Propose ways in which financial products and services may be used to better manage environmental risks and deliver both financial and environmental returns.