Windmill and blue sky

This research stream in the UCL Institute for Sustainable Resources delves into the cross-cutting role of finance in the global transition to a low-carbon economy. Special attention is given to exploring avenues for integrating finance elements into climate policy design to enhance the investment switch from fossil fuel to renewable assets, boost financial flows in developing countries and explore market structures for low-carbon finance to mobilise capital at scale.     

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Research areas

Market structures for low-carbon finance

Rolling fields with blue sky

Low-carbon finance markets are defined as markets that direct capital flows directed towards low-carbon technologies. This research area explores how to trigger virtuous cycle of investments and non-linear growth trajectories across different market conditions and stage of technology development.

Investment challenge in developing countries

Mount Kilimanjaro

A step-change in the scale and direction of investment is required to achieve the low-carbon transition, especially in developing economies. In such regions there is a huge disparity between investment needs and current financial flows. This research area explores the challenges of mobilising low-carbon investment in developing economies.

Investment switch from fossil fuel to renewable assets

Blocks of chopped wood

The transition to a low-carbon economy will entail a large-scale structural change, where capital would need to switch from high to low-carbon assets. This research area explores such dynamics and challenges to leverage capital at scale for new assets while reducing financing for the fossil fuel industry.

Research stories

Tracing climate investments and shifting investment behaviour
The city of London

Tracing climate investments and shifting investment behaviour

Seeking to support system changes to the financial industry on climate change issues through data-driven analysis from Principle Research Fellow Nadia Ameli.

UCL researchers co-author Financial Times piece calling for high-carbon investment intensity tax
Oil drill in landscape

UCL researchers co-author Financial Times piece calling for high-carbon investment intensity tax

Read about our Financial Times 'Sustainable Views' comment piece calling for the introduction of an investment emissions intensity tax to penalise investors based on the emissions their portfolios finance.

Transparency on climate risks is important, but it will not divert capital away from fossil fuels w…
Pylons, wind turbine and an energy power station

Transparency on climate risks is important, but it will not divert capital away from fossil fuels w…

In this Financial Times 'Sustainable Views' comment piece researchers question the effectiveness of climate disclosure initiatives in changing investment outlays.

Post COP27: What happened and was it enough?
UCL Generation One logo

Post COP27: What happened and was it enough?

Dr Nadia Ameli and Katie Kedward discuss the financial implications of COP27, international financial institutions, and also the focus on loss and damage at COP27 in the UCL Generation One podcast. 

Fairer finance could speed up net zero for Africa by a decade
money plant

Fairer finance could speed up net zero for Africa by a decade

Levelling up access to finance so that poorer countries can afford the funds needed to switch to renewable energy could see regions like Africa reaching net zero emissions a decade earlier, according to a study led by UCL researchers.Read press coverage on:• 'Climate Rules Need EM Focus to Avoid Investment Trap, Study Says' - Bloomberg• 'Green Finance Isn't Going Where It's Needed' - Bloomberg• 'How 'Climate Investment Traps’ Create A Vicious Cycle For African Nations' - Forbes

Recent projects 

Financing the low carbon transition in teaching

The 'Climate Finance' module provides students with a background in climate change issues from a multidisciplinary finance and policy perspective. Students will be introduced to key concepts and trends in climate finance; the main sources, instruments, ESG and disclosure initiatives, and analytical approaches used in the field; and deep dives into specific areas, such as the investment challenge in developing countries, biodiversity and hard-to-abate sectors. The Climate Finance and Investment module is part of the Business and Sustainability MSc (core module) and the Economics and Policy of Energy and the Environment MSc (optional module).

Economics and Policy of Energy and the Environment MSc

The 'Climate Finance' module is relevant to the Economics and Policy of Energy and the Environment MSc as it outlines the sector historical development, explaining the roles of international governance and private actors in shaping the current landscape of climate finance. It will also focus on the main financial instruments, structures and investment criteria used in climate finance to provide insight into current practice.

Examples of past dissertation focusing on climate finance are:

  • 'Determinants of Fossil Fuel Divestment in Banks’ Debt Financing'
  • 'Exploring the potential of investment emissions intensity taxation to induce reallocation of regulated fund investment towards more low-carbon investment'
  • 'Who cares wins: the relationship between ESG performance and financial markets performance'

Sustainable Resources: Economics, Policy and Transitions MSc 

Our research is relevant to the Sustainable Resources: Economics, Policy and Transitions MSc as it explores investment challenges in specific geographical regions (e.g. developing countries), and sectors, to illustrate the importance of context in shaping financial flows.

Examples of past dissertation focusing on climate finance are:

  • 'Is the rising of ESG criteria in investor allocation strategies risks diverting capital away from emerging economies?'
  • 'Empty Pledges: The Inequitable Distribution of International Climate Finance to Indigenous Communities'
  • 'Assessing the impact of COVID-19 on the investment climate of renewable energy in developing countries'

Business and Sustainability MSc  

The 'Climate Finance' moudule is core to the Business and Sustainability MSc as it covers climate risks in investment portfolios, and the role of central banks and financial regulators in governing climate financial flows and climate finance scenarios.

Doctoral research (PhD)

Our doctoral researchers cover a broad range of topics in the broader context of our UCL Institute for Sustainable Resources vision and themes, looking at factors related to both the physical environment and people. 

Doctoral research relating to Financing the low carbon transition:

  • Serhat Aydogdu – 'Role of venture capital investments to net-zero transition'. 
  • Mahmut Halil Ozturk – 'Microgrids for Disaster Preparedness and Recovery'.
  • Sumit Kothari – 'Scaling solar energy: an analysis of the structure and development of the investment system that powers growth'.
  • Irene Maffini - 'Crowdfunding public private crowd partnerships: a new policy tool to finance energy access projects in developing countries?'.
  • Isabelle Rojon - 'The role of multilateral development banks in mainstreaming climate considerations in financial institutions'. 

Researchers

Nadia Ameli 
Principal Research Fellow
n.ameli@ucl.ac.uk

Michael Grubb 
Professor
m.grubb@ucl.ac.uk

Hugue Chenet 
Honorary Senior Research Fellow
h.chenet@ucl.ac.uk

Jamie Rickman 
Research Fellow
jamie.rickman@ucl.ac.uk

Alexander Kartun Giles
Research Fellow
a.kartin-giles@ucl.ac.uk

Figo Lau
Research Fellow
f.lau@ucl.ac.uk

Denitsa Angelova
Research Fellow
d.angelova@ucl.ac.uk

Sumit Kothari
Researcher
sumit.kothari.16@ucl.ac.uk