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