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Beijing Institute of Technology

Carbon Finance

Beijing Institute of Technology via XuetangX

Overview

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On September 22, 2020, China proposed the “carbon peak and carbon neutrality” goals. Subsequently, the Ministry of Education issued the Action Plan for Sci-Tech Innovation in Higher Education Institutions Toward Carbon Neutrality to advance interdisciplinary programs and majors related to carbon neutrality.

This course addresses the urgent talent needs driven by China’s national “dual carbon” strategy, focusing on establishing a robust financial infrastructure critical to implementing this initiative. It systematically maps the global evolution of carbon finance markets, deeply integrating theoretical frameworks with real-world practices. Coverage includes cutting-edge areas such as carbon trading mechanism development and innovative carbon financial products, aiming to cultivate students’ ability to apply interdisciplinary methods for tackling complex carbon finance challenges through research and practice.

Breaking away from traditional finance or standalone carbon trading perspectives, the course offers distinct features and value:

1. Aligned with National Strategy and Reinforcing Ideological Leadership

Focusing on the strategic emerging field of building a multidimensional, efficient, and resilient carbon financial system, the course integrates important discourses since the 18th National Congress of the Communist Party of China on ecological civilization construction and sustainable development strategy into the essence of carbon finance and case studies of carbon trading markets. This helps students understand the underlying logic and policy orientation of China's carbon finance development, shaping their sense of responsibility and strategic thinking for green development.

2. Building Systematic Knowledge and Covering Key Areas

Pioneering a “Policy-Market-Behavior” triple-integrated core theoretical framework, the course reveals how top-level national “dual carbon” policies drive the formation of carbon finance markets, subsequently influencing micro-level behaviors of financial institutions and enterprises. It innovatively dissects practical challenges in translating China’s carbon finance vision from policy blueprint to market implementation, offering contextualized solutions rooted in domestic experience. The course content ranges from basic theories to comprehensive systems, fully covering specialized knowledge across the carbon finance spectrum, enabling the development of personalized teaching plans for students with different foundational levels.

3. Interdisciplinary Perspective and Globalized Resource Ecosystem

As a typical interdisciplinary field, carbon peak and carbon neutrality represent important breakthroughs for novel ideas, technologies, and principles. Leveraging nearly three decades of research and educational expertise in carbon emission reduction management by the Center for Energy and Environmental Policy Research at Beijing Institute of Technology (BIT), the course effectively utilizes the university's interdisciplinary leadership in management science, energy economics, environmental economics, and engineering. Supported by the Ministry of Education’s Pilot Project on Co-building Digital Courses Between Chinese and British Universities, the BIT faculty collaborates with University College London (UCL) to develop bilingual teaching resources. Through joint lectures by Chinese and international faculty and analysis of global case studies, the course realizes a dual-loop teaching model bridging “Chinese Practice” and “Global Standards”,  preparing students for practical simulations in global carbon financial governance and international cooperation.  


Syllabus

  • Chapter 01 Introduction of Carbon Finance
    • 1.1 Overview of Carbon Finance
    • 1.2 Concepts to Carbon Finance
    • 1.3 Development of Carbon Finance
  • Chapter 02 Theoretical and Operational Basis of Carbon Finance(Part 1)
    • 2.1 Climate Economic Theory
    • 2.2 Fundamentals of Finance Theory
    • 2.3 Carbon Finance Market
    • 2.4 Carbon Finance Infrastructure
    • 2.5 Carbon Financial Intermediation
  • Chapter 03 Theoretical and Operational Basis of Carbon Finance(Part 2)
    • 3.1 Introduction to Behavioral Economics and Finance
    • 3.2 Ecological Economics versus Environmental Economics
    • 3.3 Introduction to Remediation Technologies
    • 3.4 Carbon Market Design
  • Chapter 04 Carbon Emission Trading System
    • 4.1 Foundational Concepts and Mechanisms
    • 4.2 Global Leading ETS Frameworks
    • 4.3 China's Implementation of ETS
  • Chapter 05 Connecting Climate Policy, Climate Finance and Carbon Pricing
    • 5.1 Connecting Climate Policy, Climate Finance and Carbon Pricing
    • 5.2 Carbon Pricing
    • 5.3 Finance in Climate Negotiations
    • 5.4 Financial Products for Mitigating Carbon Emissions
    • 5.5 Climate Risk Stress Testing:Transition and Physical Risks
  • Chapter 06 Carbon Financial Products and Risk Management
    • 6.1 Carbon Forwards
    • 6.2 Carbon Credit Market
    • 6.3 Carbon Funds
    • 6.4 Carbon Financial Risk Management
  • Chapter 07 Supervision of Carbon Finance
    • 7.1 Theories of Carbon Financial Regulation
    • 7.2 Case Studies of Carbon Financial Regulatory Systems
  • Chapter 08 Laws and Policies Related to Carbon Finance
    • 8.1 Laws Related to Carbon Finance
    • 8.2 Case Study: Carbon Finance Legislation and Policies in Various Countries
    • 8.3 Outlook on Carbon Finance Policies in China's Carbon Market
  • Final exam

    Taught by

    Bao-Jun Tang, Lulu Wang, Meng Shen, Hui Li, D'Maris Coffman, and Xi Liang

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