Financial Innovation’s Growing Role in Climate & Cleantech
Finance & Investment/Trading & Risk Management/ESG
The architecture of financial markets is transforming in response to a double-sided helix of compounding risk-reward evolutions. On the one side, an energy sector that is more distributed, more intermittent, and potentially more volatile is prompting the emergence of new financial instruments and trading approaches that help investors and companies price and hedge the growing share of cleantech in their portfolios. On the other strand, the rising tide of climate-risk awareness is being steadily and progressively priced into financial risk models, with regulators around the world waking up to the demands of investors and financiers for high-quality comparable data and strategic signposts. How are cleantech and climate-linked fixed-income instruments rapidly evolving? What are new ways of parsing equity valuations? What is the role of carbon pricing in this innovative area of financial and capital markets?