We introduce the Carbon Equivalence Principle that requires carbon-equivalent flows enabled, or caused, by a financial product to have equal status with cashflows. This reveals that existing financial products already have environmental impact and so are ESG-linked, without the need for any...

We develop quantitative methods to support financial product analysis-redesign required by the Carbon Equivalence Principle (CEP) to achieve financial net-zero and thus carbon net-negative positions. We then apply the CEP analysis-redesign to project finance for power generation across a range...

Banks representing 40% of global banking assets are members of the Net-Zero Banking Alliance (NZBA) who commit to net-zero carbon in their portfolio impacts by roughly 2050. Here we present methods for steering their derivative portfolios based on the mitigation cost (benefit) of CO2-equivalent...