Postgraduate Course: Carbon Markets (CMSE11154)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Available to all students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | 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. |
| Course description |
The course aims to provide students with a strong theoretical grasp of carbon trading and offsetting, and a practical understanding of the mechanics of different carbon markets. Students should come away from the course able to evaluate the risks and opportunities associated with carbon markets.
The course will complement the second semester course in Low Carbon Investment, which will focus on climate change investments, which are not driven solely by carbon markets. The measurement, auditing and reporting practices associated with various markets will be covered in more depth in the semester 1 Carbon Accounting course, and the practice of emission reduction project development will be covered in the semester 2 option of that name. Finally, the course is supported by the first semester course in Energy Finance, as projects operating in carbon markets are typically still reliant on conventional financing for the bulk of their underlying investment.
Syllabus
Overview of carbon markets: Introduction to key terms, history and politics of emissions trading.
Understanding EU ETS Price Drivers
Financial Aspects of Carbon Trading in Europe
Guest Lecture: Carbon Trading Analytics
Guest Lecturer: Andreas Arvanitakis
Guest Lecture: Kyoto Project Mechanisms
Guest Lecture: The Voluntary Carbon Market
Guest Lecturer: Olivier Levallois, Carbon Projects Manager at Carbon Clear
Clean Development Mechanism II
Group Presentations
Discussion: Course review and discussion
Student Learning Experience
Formal teaching occurs in lectures and seminars. Much of the learning will be the result of students¿ own reading and reflection, and preparation for coursework. A high level of student participation is expected, through discussion in class and working in groups. Scholarly endeavour is fundamentally about building on the discovery and insights of others, and we hope that team co-operation will enrich all students.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | For Business School PG students only, or by special permission of the School. Please contact the course secretary. |
Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
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| Academic year 2015/16, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| 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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| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
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). |
| Feedback |
Presentation feedback will be provided on a feedback form in the appropriate format. Assessment marks and feedback will be provided within one month of submission or before students sit their degree examination.
Feedback will comprise in-class discussions, case studies and exercises (informal peer and lecture feedback), group presentations (formal peer and lecturer feedback), feedback on group reports and generic exam feedback |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S1 (December) | Carbon Markets | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- Describe and critically evaluate the structure and price dynamics of the major global, regional and national-level carbon markets
- Explain how carbon credits are created and traded in the major carbon markets
- Describe and evaluate the regulatory risks associated with carbon markets, and the implications for investment in emission reduction projects
- Discuss analytically the financial and strategic implications of carbon markets for business
- Critically evaluate alternative policy approaches to carbon markets
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Reading List
See the essential reading for Week 1 below. This should be done before the Week 1 lectures. For all other readings please consult the Timetable and Readings document which is available on Learn. Students are recommended to become very familiar with the World Bank's annual State and Trends of the Carbon Market report. At the time of preparing this booklet, there has been a change in series title, the latest Work Bank report is Kossoy et al. (2013) Mapping Carbon Pricing Initiatives, a pdf version is available at
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/05/23/000350881_20130523172114/Rendered/PDF/779550WP0Mappi0til050290130morning0.pdf
Stern, N. (2007) The Economics of Climate Change: The Stern Review. Cambridge: Cambridge University Press. The full report is available in the Main Library and can be perused at your leisure, but before the class please read pp. 25-27 of the electronic version of Chapter 2 which you will find on Learn (a brief introduction to the MB-MC of abatement diagram).
Hepburn, C. (2006) Regulation by prices, quantities, or both: A review of instrument choice. Oxford Review of Economic Policy 22 (2): 226-247 (read at least to p. 239, plus the conclusions). [Note: a slightly updated version of the same paper is available as chapter 18 of Dieter Helm and Cameron Hepburn (eds) The Economics and Politics of Climate Change, Oxford University Press, 2009.] |
Additional Information
| Graduate Attributes and Skills |
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 carbon markets for business
* Critically evaluate alternative policy approaches to carbon markets
* 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:
* Analyse new developments in public policy frameworks for carbon markets, and evaluate the implications for businesses involved in financing carbon emission reduction projects
* Evaluate carbon finance project risks and opportunities, in broad terms
* Comprehend, speak and write the language of carbon markets |
| Keywords | CarbM |
Contacts
| Course organiser | Dr Gbenga Ibikunle
Tel: (0131 6)51 5186
Email: Gbenga.Ibikunle@ed.ac.uk |
Course secretary | Miss Ashley Harper
Tel: (0131 6)51 5671
Email: Ashley.Harper@ed.ac.uk |
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