The Carbon Equivalence Principle: Methods and Applications
16 Pages Posted: 16 Feb 2022 Last revised: 18 Apr 2022
Date Written: April 14, 2022
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 of technologies.
Keywords: Sustainability, carbon pricing, disclosure, climate change, financial products, stranded assets, recovery, Green, ESG, carbon net-zero, financial net-zero
JEL Classification: Q54, Q59, Q55, Q58, G13, G11, G17, G21, G24, G33
Suggested Citation: Suggested Citation