Certified Expert in Climate Adaptation Finance Frankfurt School of Finance and Management

Overview

This Certified Expert in Climate Adaptation Finance course is offered by Frankfurt School of Finance and Management .

Key facts

• Climate change presents a risk to the global economy and consequently the finance sector. However, it also presents an opportunity for innovative financing to increase the economic and social resilience to climate impacts.

• As facilitators of the economy, financial institutions have a central role in the transformation to low carbon and climate-resilient development. 

• Their responsibility is twofold: greening their portfolios towards Paris compatible financing and investments, and reflecting and integrating climate-related risks into their risk management processes. 

• This gradual process involves harmonising short-term business cycles and investment horizons with systemic and long-term thinking by all actors from the financial sector (e.g. banks, asset managers, insurers, pension funds, investment consultants, regulators, rating agencies). 

• This process is supported by public actors who moderate the structural change required for a transition to climate-resilient economies.

• It clusters business models to provide an understanding of the parameters according to the project scale and, for example, revenue models, ownership structure, and value proposition, and will link to the financing perspective. Different investors and intermediaries have very different investment strategies, level of risk appetite, return expectations, and investment horizons. 

• Crowding in the right investor for a project is essential to ensure their long-term involvement and the required scale-up of investment volumes.

Course Objectives

Adaptation seeks to moderate harm or exploit beneficial opportunities. Most of the research on adaptation to date has focused on public spending on adaptation rather than private adaptation, although it may be likely that most of the adaptation financing needs appear with the private actors affected by climate change. Understanding this will help to moderate and potentially accelerate adaptation, as well as address the role of government incentives for adaptation projects. 

This course will demonstrate that adaptation can appear with different economic and financial characteristics depending on the level we look at it and the individual activity that is considered. Depending on these different characteristics there are different roles for private and commercial actors or governmental institutions in facilitating the structural change towards a low carbon and climate-resilient economy.