Economics & Finance

Sustainability Under Pressure: Evaluating the Effect of Short-Term Inhibition of EU CBAM on the ESG-Based Environmental Performance of China’s High-Carbon Industries

Shengwen Zhu, Yicen Lu, Xiyu Zhou, …

This study uses PSM-DID to analyze the short-term impact of the EU CBAM transition period on ESG environmental scores of Chinese high-carbon firms. Results show the CBAM transition significantly inhibits environmental performance, with increased financing constraints as the core…

via Sustainability

Carbon Pricing and Green Finance: A Review of the Literature

This literature review systematically organizes existing research at the intersection of carbon pricing and green finance, extracting key themes, methodologies, and policy implications. It focuses on mechanisms such as emissions trading, carbon taxes, green bonds, and…

via SSRN

Staged investments in carbon abatement technologies under a phased emission trading scheme: A real options analysis

Inho Jung, Hyunjun Han, 김현준, …

This paper uses real options analysis to examine staged investments in carbon abatement technologies under a phased emissions trading scheme, highlighting the impact of policy uncertainty on investment timing.

via Applied Energy

Climate Finance

Arindam Bandyopadhyay

This chapter details how climate risks (physical and transitional) challenge the financial system, including asset value erosion and default risks. It examines responses from regulators like the Reserve Bank of India, including climate stress tests and ESG disclosures. The…

Analysis of the Quantitative Transmission Mechanism of Climate Risk in Green Financial Asset Pricing

Hao Wang

This review examines how climate risk is quantitatively priced into green financial assets through carbon premiums, climate scenario discounts, and default structures. It synthesizes theoretical logic, empirical evidence, and challenges, highlighting the need for data…

via Exploring Science Academic Conference Series

Green Financial Innovations and Climate Risk Management

P. A. Manisha, H. P. Ramya

Green financial innovations such as green bonds and ESG investing are reshaping markets to manage climate risk and fund low-carbon infrastructure. Policy frameworks like the EU Taxonomy enhance transparency, but greenwashing and inconsistent metrics remain challenges. This…

via Crossref

Environmental Finance Instruments Designed to Finance Abatement of Greenhouse Gas (GHG) Emissions and Manage Transition Risk

Akorede K. Oluwo

This paper systematically categorizes environmental finance instruments aimed at GHG abatement and transition risk management, including green bonds, transition bonds, and carbon credits. It analyzes their features and case studies from firms and governments, proposing…

Sustainable Finance and ESG Governance: Transition Strategies for Low-Carbon Economies

Richter M.F.

This paper explores the integration of ESG factors into financial decision-making and governance structures to support the transition to a low-carbon economy. It discusses policy frameworks, corporate strategies, and investment approaches.

via Sustainable Finance and Esg Investing Integration and Performance

Decarbonization as a Business Risk: Theoretical Insights and Empirical Evidence from the Automotive Sector

Maurizio Pompella, Nicos Scordis

This paper conceptualizes decarbonization as a wicked problem, introducing a risk-based framework for transition risk. Using ESG data and Scope 1-3 emissions from eight global automotive firms (2017-2023), it develops a Decoupling Index to measure divergence between…

via Ekonomika

Digital Transformation of Sustainable Finance: A Review of FinTech Applications in ESG Scoring, Climate Risk, and Green Bonds

Fahad Ullah Khan, Asad Amin

This review comprehensively surveys FinTech applications (AI, ML, big data, blockchain) in ESG scoring, climate risk assessment, and green bonds. It highlights how digital tools improve efficiency and data coverage while addressing challenges like biased algorithms,…

via International Journal of Innovative Research in Computer Science & Technology

Decarbonization from a business risk perspective

Maurizio Pompella, Nicos Scordis

This paper analyzes decarbonization from a business risk perspective, discussing how climate-related transition and physical risks affect corporate finance and emphasizing the importance of risk management frameworks.

via Decarbonisation and the Reshaping of Risk