HIEBERT P. & VANSTEENKISTE I. - Sustainable Finance in the EU (30h)

Sustainable finance will provide a vital underpinning for a needed green transition, supporting ambitious climate-related and environmental goals both within the European Union (EU), and beyond its borders. Indeed, the European Commission’s Sustainable Finance Strategy notes the key role for the financial sector in this ‘green’ transition, by bringing together supply and demand for ‘green’ capital, thereby supporting sustainable finance.
The purpose of this course is to provide students with a thorough understanding of the rapidly evolving topic of sustainable finance. It will set out the perspective of managing financial risk from climate change, through tracing out the economic and financial implications of climate change, on the one hand. It will also review the enabling role of sustainable finance toward climate related goals, i.e. how sustainable finance can support the green transition, on the other hand. The contributing role of policy institutions and private markets to further both aims can play will also be debated. In this regard, the current on-going EU initiatives will be reviewed and put in the global context. Finally, the course will review the challenges and obstacles to supporting the green transition and mitigating the impacts from climate change.
After this course, students will have an understanding of the financially relevant channels through which climate change impacts the macroeconomy and financial sector, the concept of sustainable finance, and the on-going initiatives at EU level and roadblocks to enable the green transition.

  1. A review of the market failures in environmental economics, both informational and allocative, motivating a role for public policy
  2. Sustainable finance: Concept and overview of the recent developments, including a need for a holistic systems view given so-called dual materiality
  3. Sustainable financial markets: the role of equity markets and developments in the green bond market
  4. Measuring and quantifying the macro- and micro-economic and financial impact of climate change
  5. Review of state of the art scenario analysis methods suitable to tackle the long-term horizon associated with climate change
  6. The role of policy institutions in leveraging their respective mandates to deal with climate change challenges and in supporting sustainable finance
  7. An overview of on-going EU initiatives and the global context
  8. Main challenges and obstacles to sustainable finance

ECTS card.

A video overview of the class is available here: https://web.microsoftstream.com/video/3a42472e-5dfa-4621-820e-0d7cbed25ef4

Academic year
2024 - 2025
Second semester
Course type
Compulsory courses
ECTS Points