Skip to main content

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.

Field of science

  • /natural sciences/computer and information sciences/databases
  • /engineering and technology/environmental engineering/energy and fuels/renewable energy

Call for proposal

H2020-EE-2015-3-MarketUptake
See other projects for this call

Funding Scheme

CSA - Coordination and support action

Coordinator

ASSOCIATION 2 INVESTING INITIATIVE
Address
97 Rue La Fayette
75010 Paris
France
Activity type
Other
EU contribution
€ 787 129,51

Participants (8)

KEPLER CAPITAL MARKETS SA
France
EU contribution
€ 228 066
Address
112 Avenue Kleber
75116 Paris
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF OXFORD
United Kingdom
EU contribution
€ 333 750
Address
Wellington Square University Offices
OX1 2JD Oxford
Activity type
Higher or Secondary Education Establishments
CARBON TRACKER INITIATIVE LIMITED
United Kingdom
EU contribution
€ 133 750
Address
40 Bermondsey Street 2Nd Floor
SE1 3UD London
Activity type
Other
THE CO-FIRM GMBH
Germany
EU contribution
€ 383 800
Address
Veritaskai 3
21079 Hamburg
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
I4CE - INSTITUTE FOR CLIMATE ECONOMICS
France
EU contribution
€ 60 245,49
Address
10 Rue De Penthievre
75008 Paris
Activity type
Other
MCGRAW HILL INTERNATIONAL (U.K.) LIMITED

Participation ended

United Kingdom
EU contribution
€ 0
Address
20 Canada Square, Canary Wharf
E14 5LH London
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
S&P Global Indices UK Limited

Participation ended

United Kingdom
EU contribution
€ 0
Address
20 Canada Square
E14 5LH London
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
TRUCOST PLC
United Kingdom
EU contribution
€ 241 250
Address
Chancery Lane 22
WC2A 1LS London
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)