Carbon based assets
We study the design of carbon-based assets and their role in regulatory environments and investors' portfolios. In collaboration with Terraformation, we explore the structuring of forestry-linked debt instruments presenting appealing characteristics in asset-liability management, regulatory climate stress tests and financed emissions management. An extension of this strand of work explores biodiversity metrics and the potential role for biodiversity-enhanced carbon offsets/removals.
AI and bundled finance solutions
This strand of work studies the design of innovative financial and insurance instruments promoting financial inclusion and climate risk adaptation. An example is represented by bundled finance solutions in which parametric weather insurance is used as a credit enhancement device for agricultural input loans. Here, AI is used to design weather indices tailoring payouts to particular locations of interest and crop production technologies. We leverage the experience gained in Tanzania via large pilots run in collaboration with Munich Re and benefit from the support of the African Development Bank.