This general review paper explores the role of institutional investment in EU ETS. We do so by addressing seven questions sequentially, namely: (1) How does the EU ETS work? (2) What drives the value of carbon? (3) What potential diversification benefits arise from investing in carbon? (4) How does investing in carbon sit with investors’ fiduciary responsibilities? (5) How can institutional investors gain exposure to carbon? (6) What unconventional risks does investing in carbon entail? (7) What will happen to the carbon markets post-2012, once the Kyoto protocol expires?
University of East Anglia
I joined NBS in September 2011 as a lecturer in Corporate Finance having already taught as an Associate Tutor for six months. Previously I spent 20 years in investment banking and investment management for European financial institutions. I moved from structured finance lending at Deutsche Bank to infrastructure financial advisory work with Barclays Capital into investment management with Innisfree, ING and Climate Change Capital.
I graduated from Loughborough University with a first class BA (Hons) in Business Administration with a modern language and also hold an MBA in Strategic Carbon Management with distinction from UEA.
I am a Fellow of the Institute of Directors and a Fellow of the Higher Education Academy.
Key Research Interests
I am interested in research in the areas of responsible investment, carbon finance, project finance.
I am currently working on my PhD (part-time) looking at the impact of climate change on the cost of capital.
Publication of Book Chapter:
Diaz-Rainey, I, Finegan, A, Ibikunle, G, Tulloch, D (2014) ‘Institutional Investment in the European Union Emissions Trading Scheme’, In: Hawley, J, Hoepner, A, Johnson, K, Sandberg, J, Waitzer, E (Eds.), Handbook of Institutional Investment and Fiduciary Duty, Cambridge University Press & UN Principles For Responsible Investment (with foreword by Al Gore)
Research Group Membership
Accounting, Finance and Governance Research Group
Tyndall Centre for Climate Change Research