In the last two decades, carbon pricing, carbon credit market and carbon finance have emerged as key tools to aid energy transition and climate actions. As of 2022, 73 direct carbon pricing instruments in the form of carbon taxes or Emission Trading Systems are in operation globally, covering 23% of global GHG emissions, and reaching revenue of US$95 billion in 2022. Additionally, there are others pricing initiative such as Voluntary Carbon Markets, Internal Carbon Prices and many others. Similarly, the scale of global carbon finance has reached 1.27 trillion US$ in 2021/22 and more is expected and needed as per global commitments in post-2020 world. Future developments will be key drivers for sustainable energy transition and climate actions too. These markets and finances are different from conventional pricing, markets, and finances. This course will prepare students interested in energy and climate change issues to understand carbon pricing and carbon crediting market and climate financing issues that governments, private sector, public and international financial institutions, and the UN and bilateral organizations are grappling with.
- Teacher: Prof. Shobhakar Dhakal