Postgraduate Course: Carbon Markets (CMSE11154)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Course type | Standard |
Availability | Available to all students |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Credits | 15 |
| Home subject area | Common Courses (Management School) |
Other subject area | None |
| Course website |
None |
Taught in Gaelic? | No |
| Course description | The global carbon market was worth $125 billion in 2000 and could reach EUR 1.4 trillion by 2020 (Bloomberg New Energy Finance, 2010). These markets have been described by Commissioner Bart Chilton of the US Commodity Futures Trading Commission as "...clearly the next great frontier in the commodities trading world." There is an urgent need to develop a graduate skills base that can serve growing employer demand for expertise in this area. |
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | For Business School PG students only, or by special permission of the School. Please contact the course secretary. |
| Additional Costs | None |
Information for Visiting Students
| Pre-requisites | None |
| Displayed in Visiting Students Prospectus? | No |
Course Delivery Information
|
| Delivery period: 2013/14 Semester 1, Available to all students (SV1)
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Learn enabled: Yes |
Quota: None |
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Web Timetable |
Web Timetable |
| Course Start Date |
16/09/2013 |
| Breakdown of Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 20,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
125 )
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| Additional Notes |
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| Breakdown of Assessment Methods (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
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| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
|
| Main Exam Diet S1 (December) | Carbon Markets | 2:00 | |
Summary of Intended Learning Outcomes
INTENDED LEARNING OUTCOMES
After completing this course, students should be able to:
* Understand the nature of carbon markets as regulatory mechanisms for climate change mitigation.
* Understand the main public policy frameworks behind the major global carbon markets, and have an appreciation for how they may change over time.
* Appreciate the relationship between conventional project and corporate finance and carbon finance.
* Understand how carbon credits are created and commercialised in the major mandatory and voluntary carbon markets.
* Appreciate the regulatory risks associated with carbon credit creation, and the implications for financing emission reduction projects.
Cognitive Skills
After completing this course, students should be able to:
* Critically evaluate press coverage of carbon market issues.
* Think analytically about the financial and strategic implications of climate change for business.
* Critically evaluate alternative policy approaches to climate change.
* Conceptualise key strategic considerations associated with climate change.
* Cooperate with others from different professional, educational and cultural backgrounds to produce group analysis and present the results of group work.
Subject-Specific Skills
After completing this course, students should be able to:
* Understand new developments in public policy frameworks for carbon markets, and evaluate the implications for businesses involved in financing carbon emission reduction projects.
* Develop an understanding of how conventional financing products can be applied to raise finance for carbon emission reduction projects.
* Be able to evaluate carbon finance project risks and opportunities, in broad terms.
* Be able to understand, speak and write the language of carbon finance.
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Assessment Information
| Group presentations and accompanying wiki entry - 30% Exam - 70% (2 hours for 5-6 compulsory short answers and one longer essay from a choice of 3). |
Special Arrangements
| None |
Additional Information
| Academic description |
Not entered |
| Syllabus |
Week 1
Introduction to Carbon Markets: what carbon finance means, how it relates to conventional finance, what carbon markets and carbon offsetting mean, and an outline of course assessment and group projects.
Direct Regulation, Taxes, Incentives and Markets: an overview of the different regulatory instruments used to combat climate change, and their implications for business.
Week 2
A History of Emissions Trading: how we ended up with emissions trading as the most prominent regulatory instrument, and why we have a patchwork of national or regional markets rather than a truly integrated global system.
Week 3
The EU Emissions Trading Scheme (EU ETS): understanding the EU ETS and how the price of carbon affects investment decisions.
Carbon Trading Simulation
Week 4
The Clean Development Mechanism: discussion on the development of the Kyoto Protocol's key flexibility mechanism enabling investments in emission reductions projects in developing countries.
In-class exercise: assessing financial additionality of a CDM project.
Week 5
North American markets: overview of emerging carbon markets in the US and Canada.
Australia: overview of the Carbon Pollution Reduction Scheme.
Week 6
The voluntary carbon market: introduction to carbon offsetting, the emergence of standards, and financing of voluntary carbon offset projects.
In-class exercise: choosing the right standard for a voluntary offset project.
Week 7
Reading Week: (No classes)
Week 8
Biocarbon: how different markets treat carbon emissions from biomass and carbon sequestered by forests (Afforestation/Reforestation) or underground (CCS and biochar).
REDD is the new green: introduction to the emerging market for carbon credits for reductions in emissions from deforestation and degradation of tropical forests.
Week 9
Carbon markets and the transport sector: issues around inclusion of the transport sector in emissions trading schemes. Aviation in the EU ETS and proposals for control of international maritime transport emissions.
Week 10
Market participants and infrastructure: discussion on the role of national governments, compliance buyers, voluntary buyers, carbon funds, project developers and aggregators, consultants, speculators, information providers, lawyers, accountants, brokers, exchanges, credit rating agencies, insurance companies, etc.
Carbon Financial Instruments: summary of the current state of carbon financial instruments across the various markets covered in the course, followed by class discussion of the issues.
Week 11
Group presentations
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| Transferable skills |
Not entered |
| Reading list |
Not entered |
| Study Abroad |
Not entered |
| Study Pattern |
Not entered |
| Keywords | CM |
Contacts
| Course organiser | Dr Gbenga Ibikunle
Tel: (0131 6)51 5186
Email: Gbenga.Ibikunle@ed.ac.uk |
Course secretary | Miss Malgorzata Litwinska
Tel: (0131 6)51 3028
Email: Maggie.Litwinska@ed.ac.uk |
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