Climate Finance: The Role of Finance in Tackling Climate Change

Abstract

This course focuses on how to leverage finance in tackling climate change. We cover international climate finance negotiations as well as the role of governments in designing public policy for different financial actors in industrialized and developing countries.

Objective

- Critically examine the role of the financial system and financial actors in climate change and the low-carbon energy transition - Develop an understanding of the role and design of public policy to re-direct finance flows in line with the Paris Agreement - Find out about current challenges in climate finance, and develop ideas how to overcome them

Content

The mitigation of dangerous climate change requires massive investments in low-carbon technologies. In 2015, the Paris Agreement underlined the responsibility of governments to align finance flows with climate change mitigation. Accordingly, a market for low-carbon investments emerged, but the available climate finance falls short of what is needed. Thus, political discussions on the international and national levels concern how public policies can better use the financial system to accelerate climate change mitigation. In this course, students will learn about the role of finance for the low-carbon transition in developing countries, in industrialized countries, and specifically in Switzerland. We will discuss existing policies, their effectiveness, and the underlying political economy challenges to implement them. Combining recent academic findings and hands-on insights from guest lecturers, we will analyze structural challenges, conflicting positions in international negotiations and domestic policymaking, and the role of multilateral financial institutions. No specific prerequisites, though students should be interested in engaging with economic and finance concepts. The course will primarily feature lectures, aiming for an interactive in-class discussions. Several guest speakers from the financial industry or financial policymaking will be invited. Grading is via a writtewn exam held in one of the final sessions during the semester.

Resources