Corporate Finance Institute – Carbon Market Fundamentals
Explore carbon credits & offsets and the markets they’re traded on.
- Compare compliance & voluntary markets
- Assess different project types and their implications
- Determine carbon credit & offset quality, and associated risks & benefits
As corporate stakeholders demand that organizations reduce emissions to limit contributions to climate change, carbon markets have become more relevant than ever. It’s important to understand these markets and how to responsibly engage with them to reduce the risks of an ineffective carbon management plan. We will start the course with the basics of carbon markets: purpose, terminology, and key events and drivers that have converged to create today’s market dynamics. Next, we will discuss compliance and voluntary markets and how these differ, along with examples.
We will assess different types of projects, and their characteristics (in terms of the number of offsets generated vs. the value of those offsets), before discussing the seven key metrics used to assess projects. We will end the course by examining how analysts and management teams can engage with carbon markets and conduct due diligence around project quality.
This course is designed for management teams, business analysts, management consultants, and financial analysts of all stripes at both private and public companies.
What You’ll Learn In Carbon Market Fundamentals?
- Define the purpose of carbon markets and carbon credits.
- Explain key concepts & terminology.
- Determine carbon credit quality, as well as associated risks and benefits.
- Provide insight on the role of carbon offsets in achieving corporate climate commitments.
- Compare compliance markets and voluntary markets.
- Assess the value of different project types and their associated implications.