Principles of Carbon Finance

A comprehensive guide to the complex world of carbon finance, presenting the financial opportunities and challenges in a carbon-constrained world Carbon finance is a very complex subject, with numerous national and international regulations, strong supply, and demand uncertainties and the complexities of an emerging financial market. This book provides an introductory guide to this rapidly growing area, providing a three-step approach to the fundamentals of the topic. Part I offers a simple introduction to the fundamentals of carbon finance, and includes coverage of the science and economics of carbon finance, and the regulatory framework and an introduction to emissions. Part II then moves on to more advanced topics, notably the carbon markets and systems, how they work, carbon pricing, and the factors which influence them (weather, energy, and economic growth) and carbon finance and investment. Finally, part III brings the topic up-to-date with a look at the cutting-edge research in the carbon markets, pricing and investment strategies, and newly developed models to integrate carbon into financial analysis.