Contents

Foreword

About the Authors

Acknowledgments

List of Acronyms

CHAPTER 1: Introduction

Introduction

The Changing Climate

Corporate Climate Risk

Climate Policies

Role of the Financial Services Sector

Conclusion

CHAPTER 2: The Energy Chain

Introduction

The Energy Chain and the Value Chain

Carbon Policies

Impacts of Different Users and Uses on Climate Change

Sources of Energy: Fossil Fuels

Sources of Energy: Nuclear Energy

Sources of Energy: Hydroelectric Power

Sources of Energy: Renewables

Key Issues

Financing the Transformation of the Energy Chain: The Role of Venture Capital

Conclusion

CHAPTER 3: Regulated and Energy-Intensive Sectors

Introduction

Power Industry

Integrated Oil and Gas Industry

Transportation

Cement

Competitive Implications of Climate Risk in Regulated and Energy-Intensive Sectors

Conclusion

CHAPTER 4: The Physical Impacts of Climate Change on the Evolution of Carbon Finance

Introduction

Physical Impacts on Unregulated Sectors

Physical Impacts on Carbon-Regulated Sectors

Financial Services

Conclusion

CHAPTER 5: Institutional Investors and Climate Change

Introduction

Institutional Investors: Size and Global Reach

Environmental Reporting

Corporate Environmental Reporting

New ERA of Fiduciary Responsibility for Institutional Investors

Mutual Funds

New Momentum in the Corporate World

Barriers to the Financial Consideration of Climate Change

Institutional Investors and Climate Change

Conclusion

CHAPTER 6: Emissions Trading in Theory and Practice

Introduction

How Carbon is Traded Now

Key Issues

The Carbon Offset Market

The Role of Insurance in Emissions Trading

Issues for Dispute Resolution

Conclusion

CHAPTER 7: Climate Change and Environmental Security: Individuals, Communities, Nations

Introduction

Direct Effect of Extreme Weather Events

Health Effects of Climate Change

Polar Regions

Climate Systems and National Sovereignty

Conclusion

CHAPTER 8: Adapting to Adverse and Severe Weather

Introduction

Adverse Weather: The Role of Weather Derivatives

Severe Weather: The Role of Catastrophe Bonds

Conclusion

CHAPTER 9: Key Players in the Carbon Markets by Martin Whittaker, guest author

Introduction

Basic Elements of the Market

Key Private-Sector Players

Key Players from the Public Sector

Information Services

Professional Services

New Horizons for the Carbon Market

Conclusion

CHAPTER 10: Carbon Finance: Present Status and Future Prospects

Introduction

Trading Volumes in Carbon and Weather Markets

What Can Be Traded Where? (And What Cannot?)

Price Discovery

The Evolution of Products for Carbon Finance

Litigation Over Responsibility for Climate Change

Is Carbon Finance Likely to Help Us Avert Dangerous Levels of Climate Change?

Carbon Finance within the Broader Field of Environmental Finance

Conclusion

Web Sites

References

Index