Policing carbon markets

This working paper aims to shed light on the practical issues involved in policing carbon markets, such as new regulators with narrow authority and lack of legal precedent.

Carbon default swap – disentangling the exposure to carbon risk through CDS

In this paper the authors use Credit Default Swap (CDS) spreads to construct a forward-looking, market-implied carbon risk factor and study how, where and when carbon risk affects firms’ creditworthiness by examining whether firms’ exposure to carbon risk is reflected in the market prices of their CDS contracts.