AEM 6090 - Environmental Finance and Markets

(CU-CEL, CU-SBY)

Spring. 3 credits. Student option grading.

Prerequisite: AEM 2240 or equivalent. Co-meets with AEM 4090.

J. Tobin.

This course provides an overview of environmental finance and markets, with particular emphasis on the development and use of financial instruments and investment strategies that seek to further the long-term sustainability of ecosystems. The course will explore the uses of such products as debt-for-nature swaps, environmental impact bonds, structured notes, and green bonds, and seek to illustrate both their potential and their limitations through a review of market transactions. The course will also explore how investment decisions can influence environmental outcomes, and the role that sustainable asset management strategies can have in achieving desired conservation objectives.

Outcome 1: Describe how the tools of finance can be used to address societal challenges such as ensuring the long-term sustainability of ecosystems.

Outcome 2: Identify opportunities to leverage the power of the investment markets to achieve particular outcomes by identifying potential cash flows inherent to preserved or sustainably-managed ecosystems.

Outcome 3: Examine proposed investment blueprints and assess their potential to achieve desired conservation outcomes.

Outcome 4: Propose ways in which financial products and services may be used to better manage environmental risks and deliver both financial and environmental returns.