{"product_id":"carbon-finance-isbn-9780471794677","title":"Carbon Finance","description":"\u003cb\u003ePraise for \u003ci\u003eCarbon Finance\u003c\/i\u003e\u003c\/b\u003e  \u003cp\u003e\"A timely, objective, and informative analysis of the financial opportunities and challenges presented by climate change, including a thorough description of adaptive measures and insurance products for managing risk in a carbon constrained economy.\"\u003cbr\u003e —James R. Evans, M. Eng. P. Geo., Senior Manager, Environmental Risk Management, RBC Financial Group\u003c\/p\u003e \u003cp\u003e\"Climate change will have enormous financial implications in the years to come. How businesses and investors respond to the risks and opportunities from this issue will have an enormous rippling effect in the global economy. Sonia Labatt and Rodney White's insights and thoughtful analysis should be read by all who want to successfully navigate this global business issue.\"\u003cbr\u003e —Andrea Moffat, Director, Corporate Programs, Ceres\u003c\/p\u003e \u003cp\u003e\"In \u003ci\u003eCarbon Finance\u003c\/i\u003e, Labatt and White present a clear and accessible description of the climate change debate and the carbon market that is developing. Climate change is becoming an important factor for many financial sector participants. The authors illustrate how challenges and opportunities will arise within the carbon market for banking, insurance, and investment activities as well as for the regulated and energy sector of the economy.\"\u003cbr\u003e —Charles E. Kennedy, Director and Portfolio Manager, MacDougall, MacDougall \u0026amp; MacTier Inc.\u003c\/p\u003e \u003cp\u003e\"Climate change is the greatest environmental challenge of our generation. Its impact on the energy sector has implications for productivity and competitiveness. At the same time, environmental risk has emerged as a major challenge for corporations in the age of full disclosure. \u003ci\u003eCarbon Finance\u003c\/i\u003e explains how these disparate forces have spawned a range of financial products designed to help manage the inherent risk. It is necessary reading for corporate executives facing challenges that are unique in their business experience.\"\u003cbr\u003e —Skip Willis, Managing Director Canadian Operations, ICF International\u003c\/p\u003e \u003cp\u003e\"In this timely publication, Labatt and White succeed in communicating the workings of carbon markets, providing simple examples and invaluable context to the new and changing mechanisms that underpin our transformation to a carbon-constrained world. \u003ci\u003eCarbon Finance\u003c\/i\u003e will be the definitive guide to this field for years to come.\"\u003cbr\u003e —Susan McGeachie, Director, Innovest Strategic Value Advisors, Graduate Faculty Member, University of Toronto; and Jane Ambachtsheer, Principal, Mercer Investment Consulting, Graduate Faculty Member, University of Toronto\u003c\/p\u003e \u003cp\u003eForeword iii\u003c\/p\u003e \u003cp\u003eAbout the Authors xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xv\u003c\/p\u003e \u003cp\u003eList of Acronyms xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003eThe Changing Climate 3\u003c\/p\u003e \u003cp\u003eThe Scientific Context of Climate Change 5\u003c\/p\u003e \u003cp\u003eThe Political Context of Climate Change 8\u003c\/p\u003e \u003cp\u003eCorporate Climate Risk 11\u003c\/p\u003e \u003cp\u003eRegulatory Risk 11\u003c\/p\u003e \u003cp\u003ePhysical Risks 13\u003c\/p\u003e \u003cp\u003eBusiness Risks 14\u003c\/p\u003e \u003cp\u003eClimate Policies 15\u003c\/p\u003e \u003cp\u003eMitigation Policies 15\u003c\/p\u003e \u003cp\u003eAdaptation Measures 19\u003c\/p\u003e \u003cp\u003eRole of the Financial Services Sector 21\u003c\/p\u003e \u003cp\u003eConclusion 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Energy Chain 27\u003c\/p\u003e \u003cp\u003eIntroduction 27\u003c\/p\u003e \u003cp\u003eThe Energy Chain and the Value Chain 28\u003c\/p\u003e \u003cp\u003eCarbon Policies 32\u003c\/p\u003e \u003cp\u003ePolicy Approaches 32\u003c\/p\u003e \u003cp\u003eThe Broader Policy Context 33\u003c\/p\u003e \u003cp\u003eNational and Local Self-Sufficiency 33\u003c\/p\u003e \u003cp\u003eImpacts of Different Users and Uses on Climate Change 34\u003c\/p\u003e \u003cp\u003eUsers: Business, Households, and Government 34\u003c\/p\u003e \u003cp\u003eUses: Manufacturing, Transportation, Heating, Water, and Solid Waste 34\u003c\/p\u003e \u003cp\u003eSources of Energy: Fossil Fuels 36\u003c\/p\u003e \u003cp\u003eCoal 36\u003c\/p\u003e \u003cp\u003eOil 37\u003c\/p\u003e \u003cp\u003eGas 38\u003c\/p\u003e \u003cp\u003eSources of Energy: Nuclear Energy 39\u003c\/p\u003e \u003cp\u003eSources of Energy: Hydroelectric Power 41\u003c\/p\u003e \u003cp\u003eSources of Energy: Renewables 42\u003c\/p\u003e \u003cp\u003eTraditional Biomass 44\u003c\/p\u003e \u003cp\u003eWind Energy 44\u003c\/p\u003e \u003cp\u003eSolar Energy 46\u003c\/p\u003e \u003cp\u003eTidal Energy and Wave Energy 47\u003c\/p\u003e \u003cp\u003eModern Biomass and Biofuels 48\u003c\/p\u003e \u003cp\u003eGeothermal Energy 50\u003c\/p\u003e \u003cp\u003eKey Issues 50\u003c\/p\u003e \u003cp\u003eA Hydrogen Economy Based on Fuel Cells? 51\u003c\/p\u003e \u003cp\u003eCarbon Sequestration 52\u003c\/p\u003e \u003cp\u003eUnintended Discharges 53\u003c\/p\u003e \u003cp\u003eFinancing the Transformation of the Energy Chain: The Role of Venture Capital 53\u003c\/p\u003e \u003cp\u003eConclusion 55\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRegulated and Energy-Intensive Sectors 57\u003c\/p\u003e \u003cp\u003eIntroduction 57\u003c\/p\u003e \u003cp\u003ePower Industry 57\u003c\/p\u003e \u003cp\u003eIntegrated Oil and Gas Industry 65\u003c\/p\u003e \u003cp\u003eGovernment Mandates 65\u003c\/p\u003e \u003cp\u003ePhysical Capital 66\u003c\/p\u003e \u003cp\u003eRestricted Access to Oil and Gas Reserves 66\u003c\/p\u003e \u003cp\u003eThe Coming Age of Gas, and Beyond 68\u003c\/p\u003e \u003cp\u003eGlobal Concerns Regarding Energy Security 70\u003c\/p\u003e \u003cp\u003eTransportation 71\u003c\/p\u003e \u003cp\u003eAutomotive Industry 72\u003c\/p\u003e \u003cp\u003eFactors Affecting Auto Manufacturers’ Carbon Profile 76\u003c\/p\u003e \u003cp\u003eAviation 80\u003c\/p\u003e \u003cp\u003eCement 82\u003c\/p\u003e \u003cp\u003eCompetitive Implications of Climate Risk in Regulated and Energy-Intensive Sectors 84\u003c\/p\u003e \u003cp\u003eConclusion 87\u003c\/p\u003e \u003cp\u003eChapter 4\u003c\/p\u003e \u003cp\u003eThe Physical Impacts of Climate Change on the Evolution of Carbon Finance 89\u003c\/p\u003e \u003cp\u003eIntroduction 89\u003c\/p\u003e \u003cp\u003ePhysical Impacts on Unregulated Sectors 90\u003c\/p\u003e \u003cp\u003eWater Supply and Treatment 90\u003c\/p\u003e \u003cp\u003eAgriculture 92\u003c\/p\u003e \u003cp\u003eForestry 94\u003c\/p\u003e \u003cp\u003eFisheries 96\u003c\/p\u003e \u003cp\u003eReal Property and Production Facilities 96\u003c\/p\u003e \u003cp\u003eTransportation 97\u003c\/p\u003e \u003cp\u003eTourism 97\u003c\/p\u003e \u003cp\u003eMunicipalities 98\u003c\/p\u003e \u003cp\u003eThe Built Environment 100\u003c\/p\u003e \u003cp\u003ePhysical Impacts on Carbon-Regulated Sectors 103\u003c\/p\u003e \u003cp\u003eElectric Power 103\u003c\/p\u003e \u003cp\u003eOil and Gas Producers 104\u003c\/p\u003e \u003cp\u003eFinancial Services 105\u003c\/p\u003e \u003cp\u003eBanking 105\u003c\/p\u003e \u003cp\u003eInvestment 106\u003c\/p\u003e \u003cp\u003eInsurance 106\u003c\/p\u003e \u003cp\u003eConclusion 108\u003c\/p\u003e \u003cp\u003eChapter 5\u003c\/p\u003e \u003cp\u003eInstitutional Investors and Climate Change 111\u003c\/p\u003e \u003cp\u003eIntroduction 111\u003c\/p\u003e \u003cp\u003eInstitutional Investors: Size and Global Reach 112\u003c\/p\u003e \u003cp\u003eEnvironmental Reporting 112\u003c\/p\u003e \u003cp\u003eCorporations 112\u003c\/p\u003e \u003cp\u003eInstitutional Investors 113\u003c\/p\u003e \u003cp\u003eCorporate Environmental Reporting 113\u003c\/p\u003e \u003cp\u003eNew Era of Fiduciary Responsibility for Institutional Investors 116\u003c\/p\u003e \u003cp\u003eInvestment Decision Making 117\u003c\/p\u003e \u003cp\u003eActive Engagement 118\u003c\/p\u003e \u003cp\u003eShareholder Resolutions and Proxy Voting 120\u003c\/p\u003e \u003cp\u003eMutual Funds 122\u003c\/p\u003e \u003cp\u003eNew Momentum in the Corporate World 125\u003c\/p\u003e \u003cp\u003eBarriers to the Financial Consideration of Climate Change 127\u003c\/p\u003e \u003cp\u003eInstitutional Investors and Climate Change 130\u003c\/p\u003e \u003cp\u003eInstitutional Investors’ Group on Climate Change (IIGCC) 131\u003c\/p\u003e \u003cp\u003eCarbon Disclosure Project (CDP) 131\u003c\/p\u003e \u003cp\u003eThe Equator Principles 134\u003c\/p\u003e \u003cp\u003eInvestor Network on Climate Risk (INCR) 135\u003c\/p\u003e \u003cp\u003eConclusion 135\u003c\/p\u003e \u003cp\u003eChapter 6\u003c\/p\u003e \u003cp\u003eEmissions Trading in Theory and Practice 137\u003c\/p\u003e \u003cp\u003eIntroduction 137\u003c\/p\u003e \u003cp\u003eHow Carbon Is Traded Now 140\u003c\/p\u003e \u003cp\u003eThe Kyoto Protocol 140\u003c\/p\u003e \u003cp\u003eThe Chicago Climate Exchange 143\u003c\/p\u003e \u003cp\u003eThe European Union Emission Trading Scheme 143\u003c\/p\u003e \u003cp\u003eThe Price of Carbon in the EU ETS 148\u003c\/p\u003e \u003cp\u003eCountries outside Europe with Kyoto Caps 150\u003c\/p\u003e \u003cp\u003eCarbon Markets in the United States and Australia 151\u003c\/p\u003e \u003cp\u003eSetting up the Clean Development Mechanism and Joint Implementation 153\u003c\/p\u003e \u003cp\u003eThe Role of Carbon Funds, Carbon Brokers, and Exchanges 156\u003c\/p\u003e \u003cp\u003eKey Issues 159\u003c\/p\u003e \u003cp\u003eVerification—Protocols for Measuring Emission Reductions 159\u003c\/p\u003e \u003cp\u003eControlling the Sale of ‘‘Hot Air’’ 160\u003c\/p\u003e \u003cp\u003eThe Quality and Price of Carbon Credits 161\u003c\/p\u003e \u003cp\u003eEnforcing Compliance 161\u003c\/p\u003e \u003cp\u003eIntegrating the Various Trading Platforms 162\u003c\/p\u003e \u003cp\u003eThe CDM Bottleneck 162\u003c\/p\u003e \u003cp\u003eExtending the Time Horizon beyond 2012 163\u003c\/p\u003e \u003cp\u003eExtending Carbon Caps to Uncapped Parties 163\u003c\/p\u003e \u003cp\u003eThe Carbon Offset Market 164\u003c\/p\u003e \u003cp\u003eThe Role of Insurance in Emissions Trading 165\u003c\/p\u003e \u003cp\u003eIssues for Dispute Resolution 166\u003c\/p\u003e \u003cp\u003eConclusion 166\u003c\/p\u003e \u003cp\u003eChapter 7\u003c\/p\u003e \u003cp\u003eClimate Change and Environmental Security: Individuals, Communities, Nations 169\u003c\/p\u003e \u003cp\u003eIntroduction 169\u003c\/p\u003e \u003cp\u003eDirect Effect of Extreme Weather Events 170\u003c\/p\u003e \u003cp\u003eHealth Effects of Climate Change 173\u003c\/p\u003e \u003cp\u003eDirect Effects of Temperature Extremes: Heat Waves and Cold Spells 174\u003c\/p\u003e \u003cp\u003eIndirect Effects of Climate Change: Vector-Borne Infectious Diseases 175\u003c\/p\u003e \u003cp\u003ePolar Regions 179\u003c\/p\u003e \u003cp\u003eClimate Systems and National Sovereignty 181\u003c\/p\u003e \u003cp\u003eThe Gulf Stream and the Thermohaline Current 181\u003c\/p\u003e \u003cp\u003eThe El Niño\/Southern Oscillation (ENSO) 183\u003c\/p\u003e \u003cp\u003eConclusion 185\u003c\/p\u003e \u003cp\u003eChapter 8\u003c\/p\u003e \u003cp\u003eAdapting to Adverse and Severe Weather 187\u003c\/p\u003e \u003cp\u003eIntroduction 187\u003c\/p\u003e \u003cp\u003eAdverse Weather: The Role of Weather Derivatives 188\u003c\/p\u003e \u003cp\u003eWeather Derivative Instruments 191\u003c\/p\u003e \u003cp\u003eExamples of Weather Derivative Contracts 192\u003c\/p\u003e \u003cp\u003eCurrent Status of Weather Markets 193\u003c\/p\u003e \u003cp\u003eConstraints on the Weather Derivatives Market 196\u003c\/p\u003e \u003cp\u003eSevere Weather: The Role of Catastrophe Bonds 198\u003c\/p\u003e \u003cp\u003eThe Structure of a Catastrophe Bond 199\u003c\/p\u003e \u003cp\u003eCatastrophe Bonds and Carbon Finance 200\u003c\/p\u003e \u003cp\u003eConclusion 201\u003c\/p\u003e \u003cp\u003eChapter 9\u003c\/p\u003e \u003cp\u003eKey Players in the Carbon Markets by Martin Whittaker, guest author 205\u003c\/p\u003e \u003cp\u003eIntroduction 205\u003c\/p\u003e \u003cp\u003eBasic Elements of the Market 206\u003c\/p\u003e \u003cp\u003eEU ETS Trading 206\u003c\/p\u003e \u003cp\u003eClean Development Mechanism (CDM) and Joint Implementation (JI) Projects 207\u003c\/p\u003e \u003cp\u003eIntermediaries, Speculators, and Professional Services 208\u003c\/p\u003e \u003cp\u003eKey Private-Sector Players 210\u003c\/p\u003e \u003cp\u003eCompliance Participants 210\u003c\/p\u003e \u003cp\u003eCommercial Banks 210\u003c\/p\u003e \u003cp\u003eCarbon Funds 211\u003c\/p\u003e \u003cp\u003eSpeculative Investors 211\u003c\/p\u003e \u003cp\u003eProject Developers and Aggregators, Consultants 213\u003c\/p\u003e \u003cp\u003eEquity Research 213\u003c\/p\u003e \u003cp\u003eCarbon Brokers 215\u003c\/p\u003e \u003cp\u003eExchanges 216\u003c\/p\u003e \u003cp\u003eCredit Rating Agencies 217\u003c\/p\u003e \u003cp\u003eInsurers 217\u003c\/p\u003e \u003cp\u003eKey Players from the Public Sector 218\u003c\/p\u003e \u003cp\u003eNational Governments 218\u003c\/p\u003e \u003cp\u003eNational Business Associations 219\u003c\/p\u003e \u003cp\u003eMultilateral Banks 219\u003c\/p\u003e \u003cp\u003eInformation Services 220\u003c\/p\u003e \u003cp\u003eProfessional Services 221\u003c\/p\u003e \u003cp\u003eAccounting 221\u003c\/p\u003e \u003cp\u003eLegal 221\u003c\/p\u003e \u003cp\u003eNew Horizons for the Carbon Market 222\u003c\/p\u003e \u003cp\u003eCarbon as an Asset Class 222\u003c\/p\u003e \u003cp\u003eMainstreaming into Project Finance 222\u003c\/p\u003e \u003cp\u003eConclusion 223\u003c\/p\u003e \u003cp\u003eChapter 10\u003c\/p\u003e \u003cp\u003eCarbon Finance: Present Status and Future Prospects 225\u003c\/p\u003e \u003cp\u003eIntroduction 225\u003c\/p\u003e \u003cp\u003eTrading Volumes in Carbon and Weather Markets 227\u003c\/p\u003e \u003cp\u003eCarbon Markets 227\u003c\/p\u003e \u003cp\u003eWeather Derivatives 228\u003c\/p\u003e \u003cp\u003eWhat Can Be Traded Where? (and What Cannot?) 229\u003c\/p\u003e \u003cp\u003ePrice Discovery 230\u003c\/p\u003e \u003cp\u003eThe Evolution of Products for Carbon Finance 231\u003c\/p\u003e \u003cp\u003eLitigation over Responsibility for Climate Change 232\u003c\/p\u003e \u003cp\u003eIs Carbon Finance Likely to Help Us Avert Dangerous Levels of Climate Change? 234\u003c\/p\u003e \u003cp\u003eCarbon Finance within the Broader Field of Environmental Finance 235\u003c\/p\u003e \u003cp\u003eConclusion 237\u003c\/p\u003e \u003cp\u003eEndnotes 241\u003c\/p\u003e \u003cp\u003eWeb Sites 245\u003c\/p\u003e \u003cp\u003eReferences 247\u003c\/p\u003e \u003cp\u003eIndex 263\u003c\/p\u003e \"A clear assessment of the carbon market and financial products being developed to help address the threat of climate change.\" (\u003ci\u003eEthical Corporation Magazine,\u003c\/i\u003e May 2007) \u003cp\u003e\u003cb\u003eSONIA LABATT \u003c\/b\u003eis an associate faculty member at the Centre for Environment, University of Toronto. She has been engaged in the academic world of environmental finance through her graduate-level courses at the university, and in the financial services world as an active investor. Dr. Labatt broadens her environmental concerns, experience, and commitment through her association with World Wildlife (Canada). \u003c\/p\u003e \u003cp\u003e\u003cb\u003eRODNEY R. WHITE\u003c\/b\u003e, Professor of Geography at the University of Toronto, was director of the university’s Institute for Environmental Studies from 1994 to 1999 and 2000 to 2005. He is an Associate Fellow of the Environmental Change Institute at the University of Oxford and a Senior Fellow at Massey College, University of Toronto. White’s recent books include \u003ci\u003eBuilding the Ecological City, Planning in Cities \u003c\/i\u003e(with Roger Zetter), and \u003ci\u003eEnvironmental Finance \u003c\/i\u003e(with Sonia Labatt), which was also published by Wiley.  \u003c\/p\u003e\u003cp\u003eFor more than a decade now, environmental concerns in general, and issues regarding climate change in particular, have quietly captured the attention of financial institutions, individual investors, and a variety of businesses. This is because certain environmental conditions pose a credible threat to the global economy—affecting the wealth of societies, the availability of resources, the price of energy, and the value of companies.\u003c\/p\u003e \u003cp\u003eEnvironmental finance experts Sonia Labatt and Rodney White understand the difficulties facing companies that need to manage their greenhouse gas emissions and are well aware of the challenges that equity and debt analysts monitoring climate liabilities must overcome. That’s why they’ve created \u003ci\u003eCarbon Finance, \u003c\/i\u003ea comprehensive guide that explores the financial implications of living in a carbon-constrained world—a world in which emissions of carbon dioxide and other greenhouse gases can sometimes carry a hefty price. \u003c\/p\u003e\u003cp\u003eOpening with a brief introduction to the Kyoto Protocol and the policies that shape a carbon- constrained society, this book quickly moves on to: \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eOutline the carbon finance market place, and explain the speed with which it has developed and the complexity of its growth\u003c\/li\u003e \u003cli\u003eExplore specific products—designed to cover environmental risks associated with climate change—for Alternative Risk Transfer\u003c\/li\u003e \u003cli\u003eTake a closer look at the entire energy chain and its relationship to today’s value chain\u003c\/li\u003e \u003cli\u003eExamine the fiduciary duty of institutional investors as they assess the financial effects of climate change within the investment community\u003c\/li\u003e \u003cli\u003eDetail key mechanisms created through the Kyoto Protocol and the experience of the EU Emissions Trading Scheme\u003c\/li\u003e \u003cli\u003eAnd much more\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003eWritten in a straightforward and accessible style, \u003ci\u003eCarbon Finance\u003c\/i\u003e will help you understand the metrics of carbon, carbon dioxide, and equivalents. It develops some of the themes presented in the authors’ previous book \u003ci\u003eEnvironmental Finance,\u003c\/i\u003e and features the latest information on risk transfer measures, the Kyoto Protocol, and the role that carbon finance will play in the analysis of corporate climate risks and opportunities—as well as in company valuations. \u003c\/p\u003e\u003cp\u003eFilled with in-depth insight and expert advice, \u003ci\u003eCarbon Finance\u003c\/i\u003e provides you with the information you need—from discussions of new markets in carbon currencies to details on the interrelationship between weather and energy markets—to succeed in this dynamic field.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988885291237,"sku":"NP9780471794677","price":90.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471794677.jpg?v=1761781916","url":"https:\/\/k12savings.com\/es\/products\/carbon-finance-isbn-9780471794677","provider":"K12savings","version":"1.0","type":"link"}