Climate Policy and Investment

Averting the deepest climate crisis and mitigating the substantial financial costs of global warming and its consequences will require the decarbonization of the world’s energy systems by 2050, necessitating trillions of dollars of public and private investment. Pathways and policies are not clear – or are inconsistent – on the respective roles of public and private investment, and often overlook the myriad structural, legal, and institutional barriers to scaling both. The absence of coherent policy frameworks has also led to a proliferation of voluntary private-sector initiatives, including the explosion of “ESG investing.” Many of the challenges of sustainable investment are approached in silos - focusing specifically on public finance or on private capital, or on certain sectors, technologies, or impacts. This course is decidedly interdisciplinary and international. We will explore the myriad interrelated challenges to investing in the energy transition, to see why the ‘big picture’ is important for really understanding policies or practices at a granular level. And we will understand the importance of policy frameworks to guide, incentive, enable and structure critical investments for the energy transition. Finally, we will engage deeply with the complexities, tensions and policy trade-offs that surround investing in the energy, so that students can think about how to navigate these.