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Kick-starting global cLimate Investments: uncovering hidden liNks in climate finance and exploring dynamic evolution of investment networKs for policy deSign

Project description

Creating a new field of climate finance networks

The Paris Agreement has set out a global framework to avoid dangerous climate change by limiting global temperature rise to well below 2 °C and pursuing efforts to limit it to 1. °C. A transformation of the climate finance system is essential to deliver the scale and quality of investments needed to meet the Paris climate goals. In this context, the EU-funded LINKS project will promote essential guidance for a re-orientation of financial flows towards low-carbon and energy efficient investments. The overall aim is to advance understanding of the role of climate finance to foster the low-carbon transition. To that end, the project will apply a network theory and use advanced computational techniques and extensive empirical data to model the financial system as a complex adaptive system.

Objective

LINKS aims to contribute to a transformation of the climate finance system to deliver the scale and quality of investment needed to meet the Paris climate goals and ensure effective capital allocation. By understanding the architecture of the financial system, exploring macro patterns in low-carbon investment emerging from observed investors’ behaviour and interactions, and designing cross-cutting policies aligned with long-term climate targets, LINKS will promote essential guidance for a re-orientation of financial flows towards low-carbon and energy efficiency investments.
LINKS aims to advance the understanding of the role of climate finance to foster the low-carbon transition by using network theory, advanced computational techniques and extensive empirical data to model the financial system as a complex adaptive system. LINKS will thus lay the foundations of, and pioneer a new field, namely climate finance networks, where dynamics of interconnected investors represented as a network, results in the complex behavior of the whole system.

LINKS will bring together interdisciplinary theories and developments in finance, environmental economics, sociology, computer science, network analysis and complexity in an integrated approach to study and model climate finance. Taking this approach will allow advancements in at least three directions: i) a new theoretical approach to account for complexity thinking and systemic perspective in climate finance, ii) more empirical analyses on networks structures of low-carbon investments and their dynamics to shape the development of the climate finance system, iii) policy modelling analyses to explore whether specific architectures of the climate finance system have significant impact on the effectiveness of climate public policies and invested public resources. LINKS will thus deliver robust conclusions on how the financial system could contribute to the required investments to achieve the low-carbon transition.

Fields of science (EuroSciVoc)

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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-STG - Starting Grant

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Call for proposal

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(opens in new window) ERC-2018-STG

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Host institution

UNIVERSITY COLLEGE LONDON
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 499 956,00
Address
GOWER STREET
WC1E 6BT LONDON
United Kingdom

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Region
London Inner London — West Camden and City of London
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 499 956,00

Beneficiaries (1)

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