The Centre for Climate Finance & Investment undertakes cutting-edge research on how capital markets are responding to global climate change.

Helping investors and policymakers overcome the lack of clarity about risk and return in clean energy, low-carbon technologies, and green infrastructure. Our research covers three significant challenges - Climate Risk Management - Energy Transition Investment - Financial Architecture for a Sustainable Climate.

The Centre works closely with the Grantham Institute – Climate Change and the Environment and the Brevan Howard Centre for Financial Analysis. Imperial College Business School launched the MSc Climate Change, Management & Finance in September 2016 in partnership with the Grantham Institute.

Recent reports

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Estimating Financial Risks from the Energy Transition
Facing financial losses and financial instability from climate change, investors and regulators are urgently seeking to identify, quantify, and manage climate related-risks. This study proposes a sophisticated financially model to asses impacts.
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Energy Investing: Exploring Risk and Return in the Capital Markets

A Joint Report by the International Energy Agency and the Centre for Climate Finance & Investment. Going into the COVID-19 crisis, the trend towards renewable power was accelerating, yet investments in clean energy are still falling short.
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The High Cost of Electricity Price Uncertainty
Removing subsidies and revenue stability for renewable power generators will come at a cost. We estimate that exposure to volatile wholesale power prices will drive up the cost of capital for new renewable power projects.
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Credit Risks and Investment Taxonomies - Research in Progress
Credit Risks and Investment Taxonomies is a forthcoming research paper by CCFI and funded by INSPIRE by ClimateWorks. The aim of this research project is to understand the forward-looking risks associated with investments in “brown” industries.
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A net-zero emissions economic recovery from COVID-19

A net-zero emissions economic recovery from COVID-19

The COVID-19 emergency has several parallels to the climate emergency. This background paper provides greater detail behind the proposals in a COP26 Universities Network Briefing for UK BEIS.
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Do Investors Care About Climate Risk?
Exploring whether carbon emissions affect stock returns, the paper finds that investors are demanding compensation for their exposure to carbon risk.
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The green swan Central banking and financial stability in the age of climate change

The Green Swan: Climate Change and financial stability
Central banking and financial stability in the age of climate change. Landmark research on addressing climate change risks within central banks’ financial stability mandate. Lead author Prof Patrick Bolton is the Research Director of the CCFI.
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Financing ero carbon infrastructure

Financing Low-Carbon Infrastructure

In this report we examine strategies to mobilise private capital and facilitate greater financial sector development in support of the transition to more sustainable economic growth.
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Lending to Low Carbon Technologies

Lending to Low Carbon Technologies
Responding to climate change is fundamentally an investment challenge. This report aims to demystify the sector by applying standard tools of investment risk analysis to clean energy.
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Climate Change Investment Risks: Exploring the Implications for Optimal Portfolio Construction
We present in this paper an alternative approach which can be used by institutional investors to assess and manage energy transition risks.
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Strategic Positioning of the Oil and Gas Majors Amidst a Global Energy Transition

In this paper, we introduce a methodology for identifying strategic differentiation amongst major international oil and gas companies with regards to a low-carbon energy transition.
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Climate Change and the Cost of Capital in Developing Countries (UN Environment, 2018)
Climate Change and the Cost of Capital in Developing Countries (UN Environment, 2018)
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Growing Green Finance

A new report out today from TheCityUK and Imperial College Business School makes the case for the UK to better seize the opportunities presented by its position as a leading centre for green finance.
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Understanding Green Bonds
Our research reveals that granular data on the nature of green bond demand and the motives of buy-side market participants remains elusive.
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Going Beyond the Green

We know that low-carbon infrastructure investing is good for the planet, but does it make financial sense for big, mainstream investors?
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Firm Power Parity
This paper proposes a new conceptual framework for understanding competition in electricity markets.
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Electricity markets, incentives & zero subsidy renewables
A review of the electricity market arrangements in the UK and looking at fundamental reform as a result of the rising share of variable renewables such as wind and solar power.
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Climate Change and the Cost of Capital in Developing Countries

1:53 Climate Change and the Cost of Capital in Developing Countries

Research in Development & Thought Pieces

Notes to Researchers

The CCFI works closely with other researchers and centres within Imperial College London. If you are interested to work with the Centre for Climate Finance & Investment please get in touch.