Module FINN41515: Climate Finance

Department: Finance

FINN41515: Climate Finance

Type	Level	Credits	Availability	Module Cap	Location
Tied	4	15	Available in 2026/2027	None.	Durham

Tied To

Pre-requisites

None

Corequisites

None

Excluded Combinations

None

Aims

The goal of this course is to become equipped with analytical tools in Economics and Finance applied to the study of Green Finance and Sustainable Economics. There are many professional opportunities in the Green Finance sector. It is a rapidly emerging sector and it also plays a key role in the consulting and the traditional banking and finance sectors that face the threats of climate change. Moreover, in recent time, Green Finance sector has been a hotbed of new startup ventures. This makes green economy as one of the most important areas to understand.

Content

Sustainable investment methodologies;
ESG Megatrends;
ESG & Fixed income products;
ESG & Banking;
ESG & Equity, Private Equity & alternative investments;
Climate risks assessments;
Sustainable Real Estate;
The course is on a contemporary set of issues, so the topics above are indicative and subject to change as the various political and economic mechanisms evolve with the ongoing debate on how to pay for climate change mitigation and resilience.

Learning Outcomes

Subject-specific Knowledge

By the end of the module students should understand:
Short and long-run climate risks;
Valuation of financial instruments associated with climate investments.
Cap and trade policies and mechanisms;
Impact of climate change on private and public financing.

Subject-specific Skills

By the end of the module students should be able to:
Apply appropriate quantitative techniques to climate risk;
Develop and price new financing products linked to green initiatives and low carbon investments;
Derive the term structure of climate risk;
Value investment in resilience.

Key Skills

By the end of the module students should have developed:
Quantitative modelling and analysis skills;
Application of models and simulations in pricing and risk analysis;
Undertake applied empirical analysis.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

A combination of lectures, seminars, online resources and guided reading will contribute to achieving the aims and learning outcomes of this module.
Summative assessment by an assignment will help students develop knowledge and understanding of the subject-matter, their critical judgement and problem-solving skills.
The formative assessment via group presentation and assignment serves to help students develop their understanding and skills and will provide them with key feedback to improve their performance.

Teaching Methods and Learning Hours

Activity	Number	Frequency	Duration	Total Hours	Attendance Monitored
Lectures	10	1 per week	2 hours	20	Yes
Seminars	4	1 per fortnight	1 hour	4	Yes
Preparation and Reading				126
Total				150

Summative Assessment

Component	Component Weighting	Element	Length/Duration	Element Weighting	Resit Opportunity
Individual Written Assignment	100%	Assignment	2500 words	100%

Formative Assessment

1. Group presentation in flipped classroom is assessed with oral feedback during the class. 2. A practice essay is undertaken as part of a group submission; written feedback will be provided

Students who do not attend monitored activities shown under Teaching Methods and Learning Hours, or who fail to complete the summative or formative assessment(s) specified above, may be subject to the Academic Progress procedures defined in the University's General Regulation V, and may be required to leave the University.