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MEASURING ENERGY TRANSITION (ET) RISK FOR INVESTORS: DEVELOPING AN ENERGY TRANSITION ASSESSMENT FRAMEWORK FOR EQUITIES AND BONDS

Objective

The transition to a low-carbon economy creates financial risk and opportunities. A key barrier for investors in responding to this risk relates to the shortcomings of the current landscape of asset valuation and credit risk models in capturing this financial risk and opportunity. The objective of the project is to develop an Energy Transition (ET) risk and opportunity assessment framework. The objectives of this framework are to help investors and policy makers understand the materiality of energy transition risk and opportunity, help investors assess this materiality for bond and equity portfolios, and engage with investors & policy makers on responding to these risks in order to mobilize capital for sustainable energy investment. The activities focus on seven key industries. The core focus is on building bottom-up databases, Energy transition risk and opportunity scenarios net margin impact models. These outputs will then feed into newly developed equity valuation (developed by Kepler-Cheuvreux) and credit risk models (developed by S&P Capital IQ). The project enables investors and analysts to implement these models into their investment decision-making, either through the assessment framework or directly equity and bond indices developed in the course of the project.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: https://op.europa.eu/en/web/eu-vocabularies/euroscivoc.

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Call for proposal

(opens in new window) H2020-EE-2014-2015

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Sub call

H2020-EE-2015-3-MarketUptake

Coordinator

SUSTAINABLE FINANCE OBSERVATORY
Net EU contribution
€ 787 129,51
Address
15 RUE DES HALLES
75001 Paris
France

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Region
Ile-de-France Ile-de-France Paris
Activity type
Other
Links
Total cost
€ 787 129,51

Participants (8)

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