Course title: Carbon Finance

i. Area to which the course belongs: Public Systems Group

ii. Term in which the course is to be offered: Slot IX (PGP-II)

iii. Instructors: Prof Amit Garg (W-16, 4952)

iv. Course objectives: Carbon Dioxide emissions are the largest contributors to
‘greenhouse effect’ that causes ‘Global Warming’ and results in ‘Climate Change’. The
term ‘Carbon Finance’ is used, in practice as well as in the course title, as a surrogate
for ‘Climate Change Finance’ to cover wide ranging financial responses to mitigate and
adapt to climate change. The course is aimed to provide conceptual and practical
understanding of the anthropogenic forcing causing the climate change, the global
frameworks and mechanisms to deal with it, challenges to and responses by the
business community internationally, and the dynamics underlying the ‘Carbon Finance’.

Scientifically, ‘Climate Change’ refers to any change in climate over time, whether due
to natural variability or as a result of human activity. However, from the regulatory
perspective, as defined by the United Nations Framework Convention on Climate
Change (UNFCCC), ‘climate change’ refers to: “A change of climate which is
attributed directly or indirectly to human activity that alters the composition of global
atmosphere and which is in addition to natural climatic variability observed over
comparable periods”.

The climate change is an extreme case of externality: its origin is in global human
activities for production as well as for consumption; and its implications are global and
long-term. Responding to climate change is therefore a global venture; governed by
international legal, regulatory and institutional framework; and includes business
responses through fast emerging carbon markets globally. The markets can be used for
efficient economic response to climate change. Like all environmental markets, the
global ‘Carbon Market’ is a creation of regulations. The dynamics of the global carbon
market results from institutions, policies, instruments and the specific measures agreed
periodically by the nations which are party to the UNFCCC.

The course will introduce the evolution of the global carbon markets, carbon finance
instruments and developments. Various carbon finance instruments such as the Kyoto
mechanisms (Joint implementation, Clean Development Mechanism and Emissions
Trading), Results Based Financing, REDD+, Programme of Activities, NAMAs, Green
Bonds, and the recent developments like the Paris Climate Change Agreement and
Nationally Determined Contributions (NDCs) will be discussed. The course has global
focus with significant India-centric components. The course discussions will use
conceptual materials on climate change economics and finance and practical case
studies. Besides the financial instruments for carbon mitigation, the course also includes
discussion on financial services to deal with adverse impacts of climate change, such as
climate change insurance and emergent adaptation funds.

v. Type, plan and session-wise content of the course:

● indicates required reading/case for the session

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 DM indicates discussion material for the class
+ indicates additional reading (provided as soft copies/web-links)

Video CDs: The following video CDs will be made available in the library for
borrowing. A common viewing may be organized if requested by the students.
▪ Carbon markets
▪ Climate in Crisis, Part 1, Takeiro Asai, Japan, 2009
▪ Climate in Crisis, Part 2, Masahiro Fujikawa, Japan, 2009
▪ Before the Flood, National Geographic Documentary, 2016

⇒ Soft course materials can be accessed at: \\192.168.41.251\Material (User ID: Guest)
for all free material and faculty presentations. Paid articles are included in the
printed course material only.

⇒ Ms Vanita Singh, FPM 4th year would be the main resource support for this course. She
could be accessed at vanitas@iima.ac.in (08511802898).

Module 1: Businesses and Carbon Markets

Sessions Date/Day/Time Session Theme, Readings

Businesses and Carbon Markets

What managers should know about climate change? How

have carbon markets and carbon finance evolved? What
regulations govern the global carbon finance? How do
businesses signal their commitment to minimize their
carbon footprints? How can service firms derive
competitive advantage from carbon market?

10/09/2019 Video: Before the flood. Leonardo DiCaprio (2016)

Tuesday DM: Climate Change Is an Overwhelming Problem. Here
1
8:45 – 10:00 hrs Are 4 Things Executives Can Do Today. Harvard Business
Review (HBR), Jan 2018.
DM: CEO pulse on climate change: PwC 2016
http://download.pwc.com/gx/ceo-
pulse/climatechange/index.htm
DM: Climate Change in 2018: Implications for Business.
Harvard Business School, Jan 2018
DM: How Bold Corporate Climate Change Goals
Deteriorate Over Time. Harvard Business Review (HBR),
Nov 2017.

11/09/2019 Corporate Accounting of Greenhouse Gas Inventories

Wednesday
2 8:45 – 10:00 hrs Accounting of greenhouse gas (GHG) inventories for
corporations is the first step in managing carbon. Corporate
accounting of GHG is also the first step in any carbon
emission trading mechanism. How do companies measure
greenhouse gas emissions? What are the methodologies,
concepts and accounting principles involved? What

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 happens to GHG inventories during mergers and
acquisitions?

Case: NTPC: Accounting GHG Emissions. Amit Garg &

Bhushan Kankal (2012)
DM: The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard. World Resources
Institute, Washington DC. Revised Edition
DM: Utilities face rating downgrades due to CO2: S&P,
Trading carbon, July/August 2011
+ 2006 IPCC Guidelines for National Greenhouse Gas
Inventories (5 volumes). http://www.ipcc-
nggip.iges.or.jp/public/2006gl/ (Reference material).
Corporate Carbon Responsibility

How do businesses signal their commitment to minimize

carbon footprints? Why businesses should report financial
risks from climate change? Why should companies commit
to voluntary carbon mitigation, in the absence of carbon
markets? Do greener companies perform better on financial
parameters as well? How could a Market Index be created
for companies to show their carbon consciousness?

16/09/2019 Case: Morgan Stanley: Building Long-Term

Monday Sustainability. Harvard Business Review (HBR), March
3 8:45 – 10:00 hrs 2018.

DM: Why Companies Should Report Financial Risks from

Climate Change. MIT Sloan Management Review. April,
2018
DM: We Don't Have to Ditch Capitalism to Fight Climate
Change. Harvard Business Review (HBR), Sept 2014.
DM: How to Survive Climate Change and Still Run a
Thriving Business: Checklists for Smart Leaders. Harvard
Business Review (HBR), April 2014.

4 17/09/2019 Carbon Trading: EUETS and Emerging Trading

Tuesday Platforms
8:45 – 10:00 hrs
What are the key issues in carbon emissions trading? How
does carbon emission trading market operate? What has
been the experience of European Union Emission Trading
Scheme (EU ETS)? What are emerging carbon trading
platforms? How are they designed? How do they operate?
What are the challenges in multiple unlinked carbon
trading platforms? How could they be linked?

Case: Emission Trading Scheme in India: A market based

approach for GHG mitigation. Anindo Sarkar (PGP 2016)
and Amit Garg

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 DM: State and Trends of Carbon Pricing, May 2019,
World Bank Group, Executive Summary and Chapter 2.
DM: EUETS (2017)

Module 2: Carbon Markets and Carbon Finance Instruments

Session Date/Day/Time Session Theme, Readings

s
Carbon Finance Instruments and Funds

The following issues would be covered during this session:

1. What are the conceptual and practical issues for
measurement of ‘additionality’, ‘baseline’ and
‘leakage’ in carbon finance instruments?
2. What are various traditional carbon instruments, such
as emissions trading, joint implementation, clean
development mechanism and NAMA? How do they
operate?
3. What are the current carbon mitigation instruments as
per the Paris Climate Change Agreement, and how is
23/09/2019
finance drawn for operationalizing them?
Monday
5 4. What are the funds and facilities for carbon financing?
8:45–10:00 hrs
How do these funds operate?
5. What are the other emerging carbon finance
instruments, such as Results Based Financing, REDD+
(Reducing Emissions from Deforestation and Forest
Degradation) and GCF?

Case: “Cheat Neutral” Youtube Video

DM: Back to Life, Trading Carbon, July/August, 2011
+ NAMA pipeline
(http://www4.unfccc.int/sites/nama/SitePages/Home.aspx)
+ NDC pipeline
(http://www.unep.org/climatechange/resources/pledge-
pipeline)
6 24/09/2019 Financing a climate resilience infrastructure through
Tuesday innovative financial instruments
8:45–10:00 hrs
What are the emerging and innovative low-carbon financial
instruments and how could they help transit conventional
investments to green investments? What are “Green
Bonds” as a specific instrument and how do they operate? 
Is green investment genre the next big investment wave to
watch in 2019 and beyond?

Case: Green financing for a railway project in India. Amit

Garg, Siddhi Kasliwal and Pramod Beri (2019)
DM: How to invest in low carbon economy?
DM: Yes Bank Green Bond Impact Report 2016-17
DM: BNEF: Asia’s green bonds get carrots, Europe’s get

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 sticks, and American entities are leading the way
(https://www.bloomberg.com/view/articles/2018-07-24/green-
bonds-could-become-a-key-part-of-global-capital-markets )
DM: Bank of America’s Green Bonds Portfolio:
https://about.bankofamerica.com/en-us/green-bond-
overview.html#fbid=HR28Brdwnsh
DM: IFC Green Bond Impact Report 2017
DM: US Municipal Green Bonds, 2018 (S&P Global)

+ What Are Green Bonds and How ‘Green’ Is Green?

https://www.bloomberg.com/news/articles/2019-03-
24/what-are-green-bonds-and-how-green-is-green-
quicktake
+ Understanding green bonds and greener ways of
financing (https://www.thehindu.com/business/what-are-
green-bonds/article7070840.ece)
+ SEBI Green Bond Regulations
+ Climate Bonds Initiative: https://www.climatebonds.net/
+ What are Green Bonds? The World Bank, 2015

Linking carbon markets with local air pollution

Carbon emissions and local pollutants that affect human

25/10/2019 health adversely may have similar sources. Are there any
Wednesday tradeoffs and synergies in their mitigation and financing?
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8:45–10:00 hrs What roles do co-benefits play in carbon markets?

Video Case: Climate Change, Air Pollution and Human

Health in Delhi India. Amit Garg and Kandaswamy (2016)
DM: Industry note on the case study
Instruments for financing carbon savings for large
programmes

What are the carbon financing instruments for large

“green” programmes? How could carbon finance be
07/10/2019 leveraged to support dispersed, small carbon mitigation
Monday projects?
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8:45–10:00 hrs Case: PoA- National Programme for Energy Efficiency
Improvement in the Brick Manufacturing Sector in
Bangladesh
DM: CDM Programme of Activities (PoA) UNFCCC
https://cdm.unfccc.int/ProgrammeOfActivities/index.html
DM: DSM based Efficient Lighting Programme (DELP):
EESL Toolkit. EESL. 2015. Pages 9-21 and 132-134.

Module 3: Financing Carbon Mitigation Projects/Technologies

Sessions Date/Day/Time Session Theme, Readings

9 09/10/2019 Challenges and opportunities in financing and

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 managing coal phase down

Coal is the most carbon-intensive fossil fuel, responsible

for about 46% of global carbon emissions from fossil
fuels. Further investments in coal continue to create lock-
ins for carbon. How could coal be phased down? What
Wednesday implications it would have on coal businesses and global
8:45–10:00 hrs. energy businesses, including renewables?

Case: Alpha Natural Resources, Darden (2011)

DM: UNEP Emission gap report chapter 5 Bridging the
Gap: Phasing out coal (Garg et al, 2017)
DM: DRAX: Understanding the pounds behind the power
DM: Norway’s largest pension fund vows to drop coal
mine holdings. Financial Times, November, 2014
Internalizing carbon pricing

How could firms internalize carbon pricing? What are

marginal abatement cost (MAC) curves for carbon? Why
and how could businesses estimate their MAC curves?
Could corporates utilize carbon mitigation possibilities as
an opportunity for competitive advantage by adapting low
14/10/2019 carbon business models and marketing their carbon
10 Monday emissions intensity? How do Multilateral Development
8:45–10:00 hrs Banks and large private banks internalize carbon pricing
for project financing and firm assessments?

Case: Ambuja Cements Ltd.: Possibilities for Leveraging

Carbon
DM: State and Trends of Carbon Pricing, May 2019,
World Bank Group, chapter 4 and 5.

Carbon Finance and Green Buildings

How could energy efficiency improvement in building

sector and carbon finance be synergized? Discussions
through green buildings case.

Case: DLF Buildings: India going green

15/10/2019
DM: Green Bonds for Green Buildings? New Financing
Tuesday
Options for a Low Carbon Built Environment. The Green
11 8:45–10:00 hrs
Building Information Gateway. October, 2014
http://insight.gbig.org/green-bonds-for-green-buildings-
new-financing-options-for-a-low-carbon-built-
environment/
DM: Green Architecture: how low can a low-carbon
building go? The Financial Times. October, 2014.
DM: Smart Cities: Digital Solutions for a More Livable
Future. Mckinsey Global Institute. June, 2018. Executive
Summary

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 Financing Low or No Carbon Energy

What are the various modes for financing clean energy like
solar, wind, hydro, geothermal or bioenergy? How are the
clean energy markets developing? In what form is the
Indian government support available for this purpose, like
16/10/2019
price or quantity instruments? What are the business
Wednesday
opportunities in distributed energy and smart grid sectors?
12 8:45–10:00 hrs
Case: Amplus Solar- Sky is the Limit
DM: Support Low-carbon Investment. Nathan Fabian.
Nature. March, 2015.
Video: 20% renewable energy by 2020
Video: Greetings from Brooklyn Microgrid (2017)
https://www.youtube.com/watch?v=tABz37jZjSE

Module 4: Emerging Areas of Carbon Finance

Sessions Date/Day/Time Session Theme, Readings

Insurance and Climate Change Finance: Managing

unknown risks

Insurance market is worried about climate change as the

involved risks remain largely unknown and weather related
insurance payouts are sky-rocketing. How should it engage
with businesses in a win-win strategy to mitigate climate
change risks? What are the various other financing
mechanisms available?
21/10/2019
Case: Travelers Insurance: Focusing on Climate Change
Monday
13 and Natural Disaster Risk
8:45–10:00 hrs
DM: Small and young businesses are especially vulnerable
to extreme weather
DM: Responding to Climate Change – The Insurance
Industry perspective. Evan Mills. "Climate Action,
Sustainable Development International (in partnership with
the United Nations Environment Programme). December,
2007. Pages 100-103.
http://evanmills.lbl.gov/pubs/pdf/climate-action-
insurance.pdf
Video: Preparing for Climate Change - AXA with Cicero
Consulting
14 22/10/2019 Student’s Project Presentations
Tuesday
8:45-10:00 hrs Carbon Finance is a growing area where innovative
and financial instruments are emerging - sometimes altering
23/10/2019 and disrupting the traditional way of financing. We would
Wednesday encourage students to take up projects/issue papers on

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 topics that represent emergent challenges and opportunities
8:45–10:00 hrs for businesses. These final 2-sessions shall be for
presentations by student groups on their projects to inform
the class, elicit comments and suggestions and delineate
lessons and insights from their project work.

vi. Pedagogy: Case method and class discussions.

vii. Number of sessions required, hours needed per student for class sessions, major
papers/projects, etc.

The course will have 15 classroom sessions of 75 minutes each. A term project and exam
form part of evaluation criterion.

Carbon Finance is a growing area and we would encourage students to take up Projects on
topics that represent the latest challenges and opportunities for business. The project could be
on any generic topic covered in class sessions, and would preferably be based on secondary
literature. 5-6 students can form a group for term project. The groups have to be formed by
September 09, 2019. Each group would have to get the project topic cleared by the course
instructors latest by September 25, 2019 and provide a brief ½ page proposal outlining the
topic of the project, its coverage and proposed methodology. Some indicative themes for the
term projects will be shared with the students within the first week. Student groups would be
required to make a final presentation on their project in the classes on October 22 and 23,
2019, and submit their project report by October 31, 2019 (duly incorporating the comments
received during the presentation) in soft copies to course coordinator. The project report
should have at most 3000 words.

viii. Evaluation criteria (including pass/fail)

Class Participation and class presentation: 20%
Term project: 30%
Mid-term Exam: 50%

ix. Prerequisites and eligibility if any and their justification: None

x. Restriction on class size (both minimum and maximum), if any, and their
justification: None

xi. Relationship of the course with the overall programme objective and related
courses: Carbon Finance is an emerging area where specialized financial instruments,
business practices and services are evolving. The course adds depth to the existing
courses on environment and natural resources management.

Some Useful Websites for Carbon Finance Course

Carbon Finance Analytics Websites

1. Thomson Reuters Point Carbon
Thomson Reuters Point Carbon is a world-leading provider of independent news, analysis
and consulting services for European and global power, gas and carbon markets. It

8
 provides market intelligence in power, gas and CO2 emissions market. Access to most
services needs SUBSCRIPTION.
Link: http://www.pointcarbon.com

2. Bloomberg New Energy Finance

Bloomberg New Energy Finance provides high quality fundamental analysis of the
European, North American and global energy markets – including wind, solar, bioenergy,
geothermal, hydro & marine, gas, nuclear, carbon capture and storage, energy efficiency,
digital energy, energy storage, advanced transportation, carbon markets, REC markets,
power markets and water.
Link: http://about.bnef.com/

3. Tradition Green
Tradition Green is the environmental markets brand of Tradition, one of the world’s
largest and most successful brokerage firms. Tradition has a long history of building
businesses in the environmental markets. Tradition Green provides expertise across the
Environmental Markets, with professional brokerage services, innovative advisory and
consulting, financial acquisitions and project finance across biomass, biofuels, renewable
energy and carbon markets.
Link: http://www.traditiongreen.com

4. Environmental-Finance.com
Environmental-Finance.com is a monthly newsletter and e-mail update service providing
in-depth coverage of the global markets in sustainable investment, green finance and the
people and companies active in environmental markets.
Link: http://www.environmental-finance.com

Websites of Carbon Funds and Finance Service Providers

1. World bank Carbon Funds and Facilities

The World Bank Carbon Finance Unit uses funds contributed by governments and
companies in Organization for Economic Cooperation and Development (OECD)
countries to purchase project-based greenhouse gas emission reductions in developing
countries and countries with economies in transition.
Link: http://www.worldbank.org/en/topic/climatechange/brief/world-bank-carbon-funds-
facilities

2. Climate Finance Options

This Platform aims at providing comprehensive guidance on financial options available
for climate action in developing countries. This initiative is collaboration between the
World Bank and UNDP and would not be possible with the guidance and cooperation
of AOSIS, the UNFCCC, UNEP, Inter-American Development Bank, OECD, and the
permanent missions of Bangladesh and Ethiopia.
Link: http://www.unsystem.org/content/climate-finance-options-cfo-platform

3. Green Climate Fund

The Green Climate Fund (GCF) is a fund within the framework of the UNFCCC founded
as a mechanism to redistribute money from the developed to the developing world, in
order to assist the developing countries in adaptation and mitigation practices to
counter climate change. The GCF is based in the new Songdo district of Incheon, South

9
 Korea. It is governed by a Board of 24 members and initially supported by an Interim
Secretariat.
Link:
http://unfccc.int/cooperation_and_support/financial_mechanism/green_climate_fund/item
s/5869.php

4. UK International Climate Fund

The International Climate Fund is the UK government’s commitment to help developing
countries address the challenges presented by climate change and benefit from the
opportunities.
Link: https://www.gov.uk/government/publications/international-climate-fund

5. German Climate Finance

This site is designed to critically evaluate and increase transparency regarding the
German government’s contribution to international climate finance. It is aimed to provide
an overview of the financial resources pledged and disbursed, as well as the instruments
and channels used, and name criteria that can be used to evaluate the impact of climate-
related projects.
Link: http://www.germanclimatefinance.de/

6. The Forest Carbon Partnership Facility is a global partnership of governments,

businesses, civil society, and Indigenous Peoples focused on reducing emissions from
deforestation and forest degradation, forest carbon stock conservation, the sustainable
management of forests, and the enhancement of forest carbon stocks in developing
countries.
Link: https://www.forestcarbonpartnership.org

7. BGC Environmental Brokerage Services

Formerly known as CantorCO2e, BGC Environmental Brokerage Services is a provider
of financial services to the world’s environmental and energy markets, offering finance,
advice, technology and transaction services to clients engaged in making energy and
environmental choices.  It provides professional brokerage services to the energy and
environmental commodity markets and expertise, money and technology for projects that
reduce emissions.
Link: http://www.bgcebs.com/

8. Tricorona
Tricoronas business is focused on environmentally related market instruments, mainly
through investments in, and the trading of project-linked instruments known as Certified
Emission Reductions (CERs), within the framework of the Kyoto Protocol.
Link: http://www.tricorona.com

9. Camco Clean Energy

Camco Clean Energy is an experienced project developer working to develop, construct
and operate projects that contribute to build a sustainable future. With more than 20 years
of successful project delivery it helps clients In Asia, North America, Africa and Europe

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 to implement clean energy and emission reduction solutions, reducing costs and
maximising financial and environmental benefits.
Link: http://www.camcocleanenergy.com/

10. First Climate

First Climate is a globally leading provider of green investments expertise, climate
neutral & water services and environmental consulting.
Link: http://www.firstclimate.com/

11. Carbon Finance International

Carbon Finance International is a leading provider of origination, advisory and asset
management services worldwide on carbon market expertise, knowledge of CDM
process, industry insight and technology. It helps clients to resolve carbon related issues
from A to Z.
Link: http://www.carbonfinanceinternational.com/

12. Verco
Verco is sustainability and climate change consultancy focusing on low carbon growth,
energy efficiency & clean energy development having 23-year track record in high-level
policy and strategy work, deep technical analysis and project implementation.
Link: http://www.vercoglobal.com/

Carbon Footprint and Labeling Websites

1. NO2CO2 Carbon Calculator

This is a website to estimate individual carbon footprints & provides tools & resources for
low carbon living and is developed by an Indian company using India specific emission
factors.
Link: http://no2co2.in/CarbonCalculator.php

2. The Gold Standard: Premium Quality Carbon Credits

The Gold Standard is a Swiss-based non-profit foundation. The Gold Standard operates in
CDM, JI and voluntary markets. It provides best practice methodology and high quality
carbon credit label ‘Gold Standard’ for CERs/VERs.
Link: http://www.cdmgoldstandard.org

3. The Carbon Trust Standard

The Carbon Trust Standard certifies that an organization has genuinely reduced its carbon
footprint and is committed to making further reductions year on year.
Link: http://www.carbontruststandard.com

4. The International Emissions Trading Association (IETA)

The International Emissions Trading Association (IETA) was started in 1999 through the
cooperation of UNCTAD and the World Business Council for Sustainable Development
(WBCSD). IETA is a non-profit organization accredited by the UNFCCC. It works to
promote an integrated view of the emissions trading system as a solution to Climate
Change. It participates in the design and implementation of national and international

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 rules and guidelines and is a credible source of information on emissions trading and
greenhouse gas market activity.
Link: http://www.ieta.org

5. Official Calculator for Air Travel CO2 emissions by International Civil Aviation
Organization (ICAO)
ICAO has developed a methodology to calculate the carbon dioxide emissions from air
travel for use in offset programmes. The ICAO Carbon Emissions Calculator allows
passengers to estimate the emissions attributed to their air travel. It is simple to use and
requires only a limited amount of information from the user.
Link: http://www.icao.int/environmental-protection/CarbonOffset/Pages/default.aspx

Carbon Trade Websites

1. Intercontinental Exchange (ICE) Futures Europe: Carbon Dioxide (CO2) Emissions

ICE Futures Europe offers derivatives contracts on four types of carbon units: EU
Allowances (EUAs), EU Aviation Allowances (EUAAs), Certified Emission Reductions
(CERs) and Emissions Reductions Units (ERUs). CO2 emissions trading volumes have
experienced strong growth since the first contract was launched in 2005 and now offer
participants the world's most liquid markets for carbon emissions. Over 100 global firms
are trading members for ICE emissions products, in addition to the thousands of traders
around the world.
Link: https://www.theice.com/products/Futures-Options/Energy/Emissions

2. Chicago Climate Exchange @ Intercontinental Exchange (ICE)

Chicago Climate Exchange (CCX) is North America's largest and longest running
greenhouse gas emission reduction program. It is the world's first global marketplace for
integrating voluntary legally binding emissions reductions with emissions trading and
offsets for all six greenhouse gases. From 2003 through 2010 CCX operated as a
comprehensive cap and trade program with an offsets component. In 2011 CCX launched
the Chicago Climate Exchange Offsets Registry Program to register verified emission
reductions based on a comprehensive set of established protocols.
Link: https://www.theice.com/ccx

3. Chicago Climate Futures Exchange (CCFE)

Chicago Climate Futures Exchange (CCFE) operates the leading U.S. marketplace for
environmental derivatives, financial instruments with underlying values based on tradable
environmental assets.  CCFE's parent company (CCX) was acquired in July of 2010 by
Intercontinental Exchange (ICE).
Link: http://www.ccfe.com

4. The European Energy Exchange (EEX)

The European Energy Exchange (EEX), based in Leipzig, was founded in 2002 as a result
of the merger of the two German power exchanges in Frankfurt and Leipzig. Since then,
EEX has evolved from a pure power exchange into the leading trading market for energy
and related products with international partnerships. 
Link: http://www.eex.com

5. The Regional Greenhouse Gas Initiative (RGGI) 

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 The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort by ten Northeast
and Mid-Atlantic states to limit greenhouse gas emissions. RGGI is the first mandatory,
market-based CO2 emissions reduction program in the United States. The states of
Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey,
New York, Rhode Island, and Vermont are signatory states to the RGGI agreement.
Link: http://www.rggi.org

6. Carbon Trade Exchange (CTX)

With members in 25 countries, CTX offers its members a trusted and transparent
electronic marketplace for buying and selling carbon credits. CTX supports the trading of
carbon credits that are originated under both the United Nations Clean Development
Mechanism (CERs) and independent voluntary standards (VERs).
Link: http://carbontradexchange.com/

7. SENDECO2
SENDECO2, The European bourse for European Unit Allowances (EUA) and Carbon
Credits (CER) specialised for Small and Medium companies is a secondary market,
whose business model was developed and set-up in September 2004 and is led by a
professional team with a strong financial and capital markets background.
Link: http://www.sendeco2.com/it/

CDM Project Development and Implementation

1. Capacity Development for the Clean Development Mechanism

The United Nations Environment Programme (UNEP) has launched the project “Capacity
Development for the Clean Development Mechanism” (cd4cdm) with financial support
from the Dutch Government. The UNEP Risø Centre (URC) is the supporting
organisation contracted by UNEP to implement the project.
Link: http://www.cd4cdm.org

2. CEMTREX
CEMTREX provides complete emission monitoring instruments, equipment, software &
systems for a wide variety of industries such as; power, steel, mining, cement, fertilizer,
ferrous & non-ferrous metals, chemicals and refining. It also provides Turnkey CDM
Project Services including CDM project development technology selection and project
engineering.
Link: http://www.cemtrex.com/

3. The UNFCCC CDM Bazaar

The UNFCCC CDM Bazaar is a Web-based facility which serves as a platform for
exchange of information on Clean Development Mechanism (CDM) project
opportunities. The key objective of the Bazaar is to facilitate the creation of an efficient
global CDM market through sharing information related to project activities and
transactions of Certified Emissions Reductions (CERs) among stakeholders worldwide. It
is a global ‘virtual information exchange place’ to reduce transaction costs in the CDM
project cycle and to encourage increased information exchange and dialogue among
current and potential future project participants and other market players.
Link: http://www.cdmbazaar.net/

International CDM resource base

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1. Capacity Development for Clean Development Mechanism
It is a project website that intended to help to establish GHG emission reduction projects
that are consistent with national sustainable development goals, particularly projects in
the energy sector. It developed national capabilities so that persons in the countries are at
the project’s conclusion capable of analysing the technical and financial merits of
projects and negotiating possible finance agreements with Annex 1 countries or
investors. Link: http://cd4cdm.org/

Websites for Climate Change Insurance

1. The Swiss Re Group: Managing Climate and Natural Disaster Risk

The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other
insurance-based forms of risk transfer. Re/insurance of managing climate and natural
disaster risk is part of Swiss Re's core business.
Link: http://www.swissre.com/rethinking/climate/

Corporate Climate Initiatives

1. The HSBC Climate Partnership

The HSBC Climate Partnership is a partnership between HSBC and The Climate Group,
Earthwatch Institute, Smithsonian Tropical Research Institute and WWF. HSBC's
US$100 million investment aims to combat the urgent threat of climate change by
inspiring action by individuals, businesses and governments worldwide.
Link: http://www.hsbc.com/climatepartnership

Financial Institutions: Climate Initiatives

1. Morgan Stanley Announces Creation of Carbon Bank

It will offer clients first fully-integrated carbon auditing and offsetting service based on
highest international standards. The new service, which leverages Morgan Stanley’s expertise
in carbon trading, is being offered in conjunction with Det Norske Veritas (DNV), a leading
international provider of emissions data certification. 
Link: http://www.morganstanley.com/views/perspectives/articles/0f84d5c6-41a0-11de-a1b3-
c771ef8db296.html

2. Barclays Launches First Exchange Traded Note Linked to Carbon

Barclays, a leading intermediary in the environmental markets, is launching this investment
vehicle to meet the needs of investors’ growing appetite for exposure to Greenhouse Gas
prices. This new iPath® ETN is linked to the Barclays Capital Global Carbon Index Total
ReturnTM. The index tracks the performance of the most liquid carbon credits associated
with the world’s major greenhouse gas emissions trading plans and is designed to be a global
industry benchmark for carbon-related investing.
Link: http://www.ipathetn.com/US/16/en/home.app

3. J.P. Morgan’s Environmental Markets

J.P. Morgan’s Environmental Markets trading desk is one of the leading market makers in
exchange-traded and over-the-counter (OTC) environmental products, including European
Union Allowances (EUAs) and Certified Emission Reductions (CERs). For these
commodities, the firm offers swaps, options and investor structures.
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 Link:
http://www.jpmorgan.com/pages/jpmorgan/investbk/solutions/commodities/environmental

4. Goldman Sachs Center for Environmental Markets Awards First Research Grants
The Goldman Sachs Center for Environmental Markets, established in November 2005 to
examine market-based solutions to environmental challenges, has awarded its first research
grants. The three grants, totaling more than $2.3 million, will fund programs focused on
finding market-based solutions to climate change, including examining policy options for
lawmakers, market opportunities for environmental technologies, and valuation of fragile
ecosystems.
Link: http://www.goldmansachs.com/media-relations/press-releases/archived/2006/2006-12-
27.html

UN/World Bank websites on Climate Change

1. The United Nations Framework Convention on Climate Change (UNFCCC)

Website of the United Nations Framework on Climate Change, Resources include
complete texts of the Convention and the Kyoto Protocol, Beginners guide to the
Protocol, Reports on COP/SB 1-5, SBI, SBSTA, AGBM, sessions pages, press releases
and follow ups to COP5. Includes technology related documents including a link to the
UNEP Handbook on Methods for Climate Change Impact Assessment and Adaptation
Strategies.
Link : http://www.unfccc.int/

2. UNFCC Inventory Reporting (National Reports)

Link: http://unfccc.int/national_reports/items/1408.php

3. UNFCCC National Communications Annex 1 (National Reports)

Link :
http://unfccc.int/national_reports/annex_i_natcom/submitted_natcom/items/3625.php

4. The Intergovernmental Panel on Climate Change (IPCC)

Website of the Intergovernmental panel on Climate Change, includes publications, press
releases, links to IPCC Working Groups I, II & III, IPCC data distribution center and
IPCC greenhouse gas emissions inventory. It also includes IPCC Summaries for Policy
Makers and IPCC Technical Papers in UN languages.
Link: http://www.ipcc.ch/

5. The World Bank's Carbon Finance Unit

The World Bank's Carbon Finance Unit uses funds contributed by governments and
companies in OECD countries to purchase greenhouse gas emission reductions,
commonly known as carbon credits, generated by projects in developing countries and
countries with economies in transition. The emission reductions are purchased through
one of its carbon funds or facilities on behalf of the contributor, and within the framework
of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation
(JI). 
Link: http://wbcarbonfinance.org/

Miscellaneous

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 1. Launched in 2001, the FTSE4Good Index Series is a series of benchmark and tradable
indexes for ESG (Environmental, Social and Governance) investors. The index series is
derived from the globally recognised FTSE Global Equity Index Series, offering FTSE
Russell’s world-famous hallmark of cutting-edge index design and calculation
technology.
Link: http://www.ftse.com/Analytics/FactSheets/temp/af4f62f1-3848-40bd-aeb7-
ad92680ae6e3.pdf

2. International Carbon Action Partnership (ICAP)

In 2007, leaders of more than 15 governments met in Lisbon, Portugal to launch the
establishment of the International Carbon Action Partnership (ICAP). ICAP is made up of
countries and regions that have implemented or are actively pursuing the implementation
of carbon markets through mandatory cap and trade systems. The partnership provides a
forum to share experiences and knowledge.
Link: http://icapcarbonaction.com/

3. The Climate Bonds Initiative

The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale
investment in the low-carbon economy. It promotes safe and secure investments suitable
to the needs of pension and insurance funds.
Link: http://climatebonds.net/

4. World Ports Climate Initiative (WPCI) by International Association of Ports and Harbors
(IAPH)
Fifty-five of the world’s key ports, acknowledging their unique capacity as key hubs in
global supply chains, have come together in a commitment to reduce their greenhouse gas
emissions while continuing their role as transportation and economic centers.
Link: http://wpci.iaphworldports.org/index.html

5. Green Growth Action Alliance Working Groups-World Economic Forum

The Green Growth Action Alliance is supporting the scale-up in green growth through the
collaboration of more than 50 leading financial institutions, corporations, governments
and nongovernmental organizations. By bringing together the knowledge of many
different stakeholders, the Alliance aims to work with governments to help them adopt a
systematic approach that rewards innovative green sectors through sound policies and
improves their access to finance.
Link: http://reports.weforum.org/green-investing-2013/green-growth-action-alliance-
members/

6. Global Reporting Initiative- Empowering sustainable decisions GRI is an international

independent organization that helps businesses, governments and other organizations
understand and communicate the impact of business on critical sustainability issues such
as climate change.
Link: https://www.globalreporting.org

7. Climate Policy Initiative (CPI)

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 Climate Policy Initiative is a team of analysts and advisors that works to improve the
most important energy and land use policies around the world, with a particular focus on
finance. It answers pressing questions posed by decision makers through in-depth analysis
on what works and what does not. It works in places that provide the most potential for
policy impact, including Brazil, China, Europe, India, Indonesia, and the United States.
Link: http://climatepolicyinitiative.org/

8. Climate Change, Agriculture & Food Security (CCAFS)

CCAFS brings together the world's best researchers in agricultural science, climate
science, environmental and social sciences to identify and address the most important
interactions, synergies and trade-offs between climate change and agriculture.
Link: http://www.ccafs.cgiar.org/

9. C40 Cities-Climate Leadership Group

C40 is a network of the world’s megacities taking action to reduce greenhouse gas
emissions. With a unique set of assets, the C40 works with participating cities to address
climate risks and impacts locally and globally.
Link: http://www.c40cities.org

10.  Institute for Global Environmental Strategies (IGES)

The aim of the Institute is to achieve a new paradigm for civilization and conduct
innovative policy development and strategic research for environmental measures,
reflecting the results of research into political decisions for realising sustainable
development both in the Asia-Pacific region and globally. 
Link: http://www.iges.or.jp/en/index.html

11. Clean Energy Ministerial (CEM)

It is a high-level global forum to promote policies and programs that advance clean
energy technology, to share lessons learned and best practices, and to encourage the
transition to a global clean energy economy. Initiatives are based on areas of common
interest among participating governments and other stakeholders.
Link: http://www.cleanenergyministerial.org/

12. ClimateCare
ClimateCare is an independent ‘profit for purpose’ organisation committed to tackling
climate change, poverty and development issues. It runs some of the world’s largest
corporate carbon offsetting programmes. In addition, it originates and sources compliance
and voluntary carbon credits on behalf of large corporates, NGOs, and nation states.
Link: http://www.climatecare.org/index.htm

13.  International Carbon Reduction and Offset Alliance (ICROA) 

It is an international non-profit alliance of businesses providing carbon reduction and
offset services. ICROA members operate across Europe, North American and Australia
and are managed by an independent secretariat operated within the International
Emissions Trading Association (IETA).
Link: http://www.icroa.org/

14. Verified Carbon Standard

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 VCS is the world’s largest voluntary greenhouse gas reduction program. It was founded
in 2005 by a collection of business and environmental leaders. Since that day, VCS
projects all across the world have removed more than 125 million tonnes of CO2e from
the atmosphere. 
Link: http://www.v-c-s.org/

15. Carbon Offset Research and Education (CORE) Initiative

This website provides an up-to-date analysis and synthesis of the most influential offset
programs and activities. It reflects on lessons learned, and aims to inform consumers as
well as participants and designers of current and future offset programs.
Link: http://www.co2offsetresearch.org/

16. Leadership in Energy & Environmental Design – (LEED)

An initiative of the U.S. Green Building Council (USGBC), LEED is a certification
pioneer in the area of green architecture / designing green buildings. LEED certified
buildings are supposed to be resource efficient and promoting renewable, clean energy.
Link: http://in.usgbc.org/leed

17. The U.S. Green Building Council – (USGBC)

A network of thousands of member organizations, chapters, students and community
volunteers, builders and environmentalists, corporations and nonprofits, teachers and
students, lawmakers and citizens sharing a vision of a sustainably built environment for
all.
Link: http://in.usgbc.org/home

18. Shakti Sustainable Energy Foundation

The Shakti Foundation is a non-profit company that works collaboratively with national,
state and local stakeholders to develop sound energy policies to build India’s new energy
economy.
Link: http://shaktifoundation.in/

19. Center for Climate and Energy Solutions – C2ES

Is an independent, nonpartisan, nonprofit organization working to advance strong policy
and action to address climate and energy challenges. It was launched in 2011 and is the
successor to the Pew Center on Global Climate Change.
Link: http://www.c2es.org/

20. State and Trends of Carbon Pricing

Link: https://openknowledge.worldbank.org/handle/10986/13334

21. Decarbonizing Development: Three Steps to a Zero-Carbon Future (By: Fay et al., World
Bank Group, 2015)
Link: http://www.worldbank.org/content/dam/Worldbank/document/Climate/dd/decarbonizing-
development-report.pdf

22. Global corporate use of carbon pricing – Disclosures to investors (CDP, North America,
2017)
Link: https://www.cdp.net/en/research/global-reports/global-cities-report-2016

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