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    An examination of climate and energy finance placed in their broader energy and environmental policy context.

    How can energy system decarbonisation be financed, and how effectively and efficiently are energy and carbon markets functioning? The paper provides a research-led addition to our MFinc programme in an emerging field.

    About this paper

    Paper title Climate and Energy Finance
    Subject Finance
    EFTS 0.1667
    Points 20 points
    Teaching period Not offered in 2024 (On campus)
    Domestic Tuition Fees ( NZD ) $1,196.41
    International Tuition Fees Tuition Fees for international students are elsewhere on this website.
    (BSNS 108 or BSNS 114) and (EMAN 308 or FINC 303)
    An equivalent paper may be substituted for the FINC303 or EMAN308 prerequisite requirement with approval from the Head of Department.
    This paper is normally available only for MFinc students.
    Teaching staff

    To be advised.

    Paper Structure

    • Energy Policy
    • Environmental Policy and Climate Change
    Financing energy decarbonisation
    • Clean energy finance (financing research and development, FITs vs GCM, carbon credits)
    • Investment appraisal of energy technologies: levelised cost of energy (LCOE)
    • Project finance (general introduction and energy specific) (Case 1)
    • Carbon project finance (e.g. clean development mechanism (CDM))
    Energy/carbon markets and market issues
    • Carbon markets (New Zealand Emissions Trading Scheme (NZ ETS) and EU ETS)
    • Energy markets, speculation debate (Essay) and regulation of energy markets
    • Electricity markets
    • Stranded assets and financial risks from climate change
    • Investment analysis of energy companies (valuation: Case 2)
    Teaching Arrangements
    • Two 2-hour lectures per week for 13 weeks
    • Written assignments; essays and two case studies
    • Final exam

    Textbooks are not required for this paper.

    Course outline
    View the course outline for FINC 420
    Graduate Attributes Emphasised
    Communication, Critical Thinking, Self-Motivation, Research.
    View more information about Otago's graduate attributes.
    Learning Outcomes

    Students who successfully complete the paper will:

    • Understand the complex interrelationships between finance and energy/environmental policy
    • Gain an understanding of how energy and carbon markets function
    • Be able to use finance techniques and theory to make energy finance/investment decisions
    • Explore the latest methods and approaches for doing empirical research in energy and carbon finance


    Not offered in 2024

    Teaching method
    This paper is taught On Campus
    Learning management system
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