As drivers of climate action enter the fourth decade of what has become a multi-stage race, Net Zero has emerged as the dominant organizing principle. Hundreds of corporations and investors worldwide, together responsible for assets in the tens of trillions of dollars, are lining-up for the UN Race to Zero. This latest stage in the race to save civilization from heat, drought, fires, and floods, is defined by steering toward zeroing out greenhouse gas emissions by 2050.
Settling Climate Accounts probes the practice of Net Zero finance. It elucidates both the state of play and a set of directions that help form judgements about whether Net Zero is going to carry climate action far enough. The book delves into technical analyses and activates the readers imagination with narrative accounts of climate action past, present, and future.
Settling Climate Accounts is edited and authored by Stanford University faculty and researchers. The first part of the book investigates the rough edges of Net Zero in practice, exploring questions of hedging risk, Scope 3 emissions, greenwashing, and the business of asset management. The second half looks at states, markets, and transitions through the lenses of blended finance, offsets, debt, and securitization. The editors tease out possible solutions and raise further questions about the adequacy and reach of the Net Zero agenda. To effectively navigate the road ahead, the editors call out the need for accountability and ask: who is in charge of making Net Zero add up?
Settling Climate Accounts offers context and foundation to ground the rapidly evolving practice of Net Zero finance. Targeted at seasoned practitioners, newly activated leaders, educators, and students of climate action the world over, this book embraces the complexity of climate action and, in so doing, proposes to animate and drive hope.
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1 Introduction---The Rise of Net Zero |
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1 | (14) |
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Part I The Dynamics of Net Zero Finance |
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2 A Portfolio Approach to Hedging Climate Risk |
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15 | (24) |
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3 Carbonwashing: ESG Data Greenwashing in a Post-Paris World |
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39 | (20) |
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4 The Road from Scope 3 to Net Zero |
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59 | (12) |
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5 Fixing the Plumbing: Asset Management, Clean Energy Technology, and the Valley of Death |
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71 | (22) |
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Part II Beyond Net Zero: States, Markets, and Transition |
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6 Blended Finance for State-Led Decarbonization |
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93 | (28) |
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7 A Natural Approach to Net Zero |
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121 | (24) |
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8 A Note on Transition Bonds and Finance |
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145 | (16) |
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9 Securitization as a Model for an Equitable Transition |
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161 | (30) |
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10 Conclusion: Accounting for Climate |
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191 | (16) |
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| Index |
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207 | |
Thomas Heller is the Charles and Nadine Shelton Professor of International Legal Studies (emeritus) at Stanford University Law School. He also currently directs the Precourt Energy Institutes Sustainable Finance Initiative and the Steyer-Taylor Center at Stanford. In 2009 Heller founded the Climate Policy Initiative, where he was Executive Director until 2018, and remains Senior Advisor and Board Chair. As of January 2021, he became Senior Director (Risk) at WillisTowersWatson. His research has focused on risk analytics, global energy use, international climate regimes, public finance and taxation, international technology investment, and the rule of lawwith particular attention to legal and economic structures in the developing world. Professor Heller has worked with the Intergovernmental Panel on Climate Change (1995-2003), and has served as Jean Monnet Visiting Professor at the European University Institute, Deputy Director and Senior Fellow of the Freeman Spogli Institute for International Studies at Stanford University, and Senior Fellow (by courtesy) at the Woods Institute for the Environment.
Alicia Seiger is a lecturer at Stanford Law School and leads sustainability and energy finance initiatives at Stanford Law, Graduate School of Business, and the Precourt Institute for Energy. Alicia has served as an advisor to the Governors of California and New York, the New York State Comptroller, and numerous pension fund, endowment, and family office CIOs on the topics of climate risk, opportunity, and resiliency. A student of balancing human and ecological systems since the early 1990s, Alicia has been designing and executing climate and energy strategies for businesses, foundations, investors, and NGOs since 2004. She has served on the management teams of multiple startups including TerraPass, a pioneer of the US carbon offset market. Alicia serves on the boards of Ceres and Prime Coalition and co-founded Stanford Professionals in Energy (SPIE).
