Emission trading Scheme (ETS) is gaining momentum with its increasing market size and constantly improving information transmission mechanisms. With carbon assets becoming prominent as an alternative asset in investment portfolios, the ETS market has engaged a broad range of participants,...

Investors have a growing awareness that climate transition risks (such as carbon pricing policy) are among the new risk drivers of the financial system. One of the relevant implications of a shock in carbon price is the increase in business costs, which may diminish profitability and affect...