Carbon Pricing: Can Financial Engineering Save the Planet?
In January 2022, EDHEC Business School has launched a new online monthly speaker series on “The Future of Finance”. The objective is to address the most recent advances in the financial industry and discuss how finance can be a powerful tool for tackling key economic and social challenges. To do so, this series gathers all year long international renowned industry experts and academic scholars reflecting the research culture and intellectual commitment of EDHEC Business School #makeanimpact. The targeted audience is the current EDHEC Business School finance graduate students, the EDHEC alumni, and the members of the enlarged EDHEC community and guests.
On February 27, 2024, EDHEC Business School hosted Robert Litterman, the co-developer of the Black-Litterman Global Asset Allocation Model, a key tool in investment management, who delivered a talk on Carbon Pricing.
Carbon pricing has a pivotal role in addressing carbon emissions and climate change, and accurately pricing it is intimately linked to risk management.
Bob introduced carbon-linked bonds, exploring how this financial instrument allows governments to signal their carbon pricing intentions and provides motivation for governments to act on their climate commitments.
Litterman's expertise underscores the urgency and complexity of integrating carbon pricing into the broader climate action agenda, offering invaluable guidance for policymakers, investors, and environmental advocates alike.
The session was moderated by Riccardo Rebonato, Scientific Director at the EDHEC-Risk Climate Impact Institute and Professor of Finance at EDHEC Business School and Emmanuel Jurczenko, Director of Graduate Finance Programmes at EDHEC Business School.
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
