It is difficult to assess the effectiveness of investment strategies that screen companies based on environmental criteria to hedge climate change risk because physical risks have not yet fully materialized and policies to combat climate change are usually widely anticipated. This paper...

The electricity generation mix of many European countries is strongly dominated by fossil fuelled power plants. Given that CO2-emissions are responsible for a major part of the anthropogenic greenhouse effect, emission trading has been introduced in the EU in 2005. Under the European emissions...

The aim of the European Union's Emissions Trading Scheme is that by 2020, emissions from sectors covered by the EU ETS will be 21% lower than in 2005. In addition to large CO$_2$ emitting companies covered by the scheme, other participants have entered the market with a view to using emission...

While there have been many legal studies of the European Union Emissions Trading Scheme, few have considered the effectiveness of the EU ETS as a matter of private law design. The authors propose to do so by tracing the history of the scheme, studying the English decision of Armstrong DLW GmbH v...

This paper outlines a simple and robust methodology for portfolio managers to align their portfolios with the carbon neutrality goals (Net Zero Targets) set out following the Paris Agreement in 2015. The approach is based on dynamically limiting the portfolio carbon footprint so that it...