This article, by James Palmer and Prof. Michael Mainelli and part of the London Accord, is intended to provide an illustration of the application of portfolio modelling to climate change investment. For more information go to www.london-accord.co.uk

In order for the true cost of carbon to be represented in the market, its effects on the environment must be captured like any other externality, and subject to the same laws of supply and demand, setting a dynamic price of emissions in business.This article by the Z/Yen Group examines the two primary market mechanisms available – cap-and-trade schemes, and carbon tax. For more information go to www.london-accord.co.uk

The Road to London, by Prof. Michael Mainelli and Jan-Peter Onstwedder, tells the story of how the London Accord came to be, from its origin in the autumn of 2005 to its publication in December 2007, tracing the individuals and the external factors that shaped it. For more information go to www.london-accord.co.uk

The carbon challenge is a complex area and, to help managers plan the way forward, Clownfish Marketing has created a Carbon Management guide. This guide aims to outline how organisations can take their carbon management strategy beyond carbon offsets helping them enhance their corporate reputation, protect themselves from inevitable future legislation and demonstrate their commitment to responsible business practices. 

The researchers from the Grantham Research Institute on Climate Change and the Environment and the Centre for Climate Change Economics and Policy conclude that about US$400 billion should be spent worldwide on ‘green’ policies and investments which also help economic recovery and lay the foundations of sustainable low-carbon growth. The report, ‘An outline of the case for a ‘green’ stimulus’, points out that this sum represents about 20 per cent of the US$2 trillion, or 4 per cent of global gross domestic product, that governments might spend in the next 18 months on fiscal stimulus packages to lessen the economic downturn.