Sustainable Finance – Hoax or necessity. A global perspective

Anne Löscher
Summer Academy 2022 for Pluralist Economics, 2022
Poziom: początkujący
Nurt ekonomii: Inne
Temat: resources, environment & climate
Formularz: Syllabus

This workshop was originally taught at the Summer Academy for Pluralist Economics 2022
Instructor: Anne Löscher (University of Siegen, Germany)

Background and aim of the workshop

The world is on fire – as Greta Thunberg put it. Though we have “only” reached an average global rise in temperature of 1.2°C compared to preindustrial levels, we already experience dramatic changes: extreme weather events have quadrupled since the 1980ies. If we continue on the current emission path we might cause the earth to warm up by 4°C on average until the end of this century (IPCC, 2019). The resulting storms, droughts, floods, desertification, extreme temperature shifts etc. have fundamental macroeconomic consequences: food inflation is projected to rise, imperilling food security; the destruction of infrastructure, production sites and household wealth as a result of the physical effects of the climate crisis impact balance sheets of countries, firms, households and financial institutions with destabilising effects for the financial system and the economy as a whole; and transitional risks coming with policy decisions to shift towards a low-carbon economy such as the EU’s plan to become carbon-neutral till 2050 yield the risk of stranded assets with further destabilising effects (Batten, Sowerbutts and Tanaka, 2020; Bolton et al., 2020).

These developments also affect financial markets, its agents and regulatory bodies. The volume of financial assets classified as environmentally or socially sustainable has jumped from around US$400billion in 2012 to about US$1.300billion in the second quarter of 2020 (Belloni et al., 2020) – a rise by 325%. The Task Force on Climate-related Financial Disclosures (TCFD) was founded in 2015 as result of a G20 summit’s decision to include financial risks in financial regulation frameworks. Institutions like the Network for Greening the Financial System (NGFS) – a conglomerate of different central banks and supervisory bodies – followed in 2017. The worlds’ biggest financial investors such as BlackRock (BlackRock, 2021) and JPMorgan (JPMorgan Chase&Co., 2021) are jumping on the train by promising enormous portfolio restructurings. 

Aim of this intensive workshop is 1.) to introduce the participants to the macroeconomic workings of the climate crisis as the background of sustainable finance; 2.) to introduce financial assets with ESG (Environmental, Social and Governance) criteria attached to them and their markets and important institutional players; 3.) to provide a critical perspective on the current setup of sustainable finance; 4.) and to work on in-depth case studies illustrating the workings on ESG-finance markets, its emitters and traders as well as their macroeconomic implications.

Previous knowledge on financial markets is not required. ECTS-points can be collected in this workshop. The workshop will be conducted in English, however, brief explanations can be given in German, too, if needed.

 

Selected literature:

Here is some introductory material (not necessarily endorsement!):

Readings:

Videos:


Preliminary outline

  • Day 1: Macroeconomics in times of the Climate Crisis
  • Day 2: Workings of ESG-instruments, financial markets and its big players
  • Day 3: Greening the financial system: policies and regulations;  pros and cons of sustainable finance and of its possible alternatives
  • Day 4: In-depth case study analyses
  • Day 5: Buffer day and wrapping up
  • Day 6: Presentation of group work, feedback round 

 

Download syllabus here

Tags: climate | climate change | climate related risks | finance | macroeconomic | macroeconomics | sustainable
Chercheuse au CNRS, Lauriane Mouysset s'attaque au défi de concilier économie et écologie pour concevoir un développement durable. Pas si simple de faire un choix, lorsqu’il s’agit de penser en amont, à tous les avantages mais aussi aux conséquences qui vont en découler. Peut-être que la clé de tout choix se trouve sur les valeurs fondamentales, celles qui font nos sociétés. Lauriane nous invite à réfléchir à la meilleure façon d’agir et de faire un bon choix face à la crise écologique. 2018 Level: początkujący Repenser le défi écologique Lauriane Mouysset TEDxBordeaux Wo fängt ein Subjekt an – und wo hört es auf? Diese Frage ist zentral für die Art und Weise, wie wir über Wirtschaft nachdenken und sie organisieren. Ein Beitrag von Manuel Schulz. 2023 Level: zaawansowane Auf dem Weg zu einer existenziellen Ökonomik Manuel Schulz Economists for Future The last 15 years have seen extensive research into ecosystem service valuation (ESV), spurred by the Millenium Ecosystem Assessment in 2005 (Baveye, Baveye & Gowdy, 2016). Ecosystem services are defined as “the benefits people obtain from ecosystems” (Millenium Ecosystem Assessment, p.V). For example, ecosystems provide the service of sequestering carbon which helps regulate the climate. Valuation means giving ecosystems or their services a monetary price, for example researchers have estimated that the carbon sequestration services of the Mediterranean Sea is between 100 and 1500 million euros per year. The idea of ESV was a response to the overuse of natural resources and degradation of ecosystems, allegedly due to their undervaluation and exclusion from the monetary economy. ESV can be used (1) for policy decision-making, for example allocating funding to a reforestation project (2) for setting payments to people who increase ecosystem services, for example a farmer increasing the organic carbon content of their soil, and (3) for determining fees for people who degrade ecosystem services, for example a company that causes deforestation. 2021 Level: początkujący A Pluralist Perspective on Ecosystem Service Valuation Introduction Maya Exploring Economics In this teaching pack, we take a look at satellite crop monitoring and how it is used for both real and financial economic activities. By looking at commodity futures, we give students a sense of what financialization can mean. In the active exercise students learn to discuss these matters and reflect upon them. 2022 Level: początkujący Space & Agriculture Economy Studies Economy Studies Im AS-AD Gleichgewicht treffen die Gleichgewichtsbedingungen aller Märkte (Güter-, Geld-, Finanz- und Arbeitsmarkt) einer Volkswirtschaft zusammen. Das Gleichgewicht wird bestimmt durch die gesamtwirtschaftliche Nachfrage „aggregate demand“ und dem gesamtwirtschaftlichen Angebot „aggregate supply“ einer Volkswirtschaft. 2021 Level: początkujący AS-AD-Gleichgewicht   Wiwiwiki Laut Bundesfinanzministerium dient die Schuldenbremse der Sicherung der langfristigen Tragfähigkeit der Haushalte von Bund und Ländern, sowie der Sicherung der finanziellen Handlungsspielräume zur Erfüllung der staatlichen Aufgaben. So ist es im Grundgesetz in Artikel 109 festgeschrieben. Artikel 115 erläutert näher, dass der Bund strukturell, also unabhängig von der konjunkturellen Lage nur Nettokredite im Rahmen von 0,35% des Bruttoinlandproduktes vornehmen darf. 2022 Level: początkujący Auf dem Weg zu nachhaltigen Staatsfinanzen Albert Vonnieda, Eike Higgen und Niclas Schoppenhauser Rethinking Economics Kiel

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Ten projekt został stworzony przez Sieć na rzecz Pluralistycznej Ekonomii (Netzwerk Plurale Ökonomik e.V.).  Jest on zaangażowany w różnorodność i niezależność i jest zależny od darowizn od ludzi takich jak Ty. Regularne lub jednorazowe datki będą bardzo mile widziane.

 

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