Global Finance Conference and Ethical Finance and Sustainability Conference
Prof. Carsten Müller and Papa Orgen from Fulda University of Applied Sciences…
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Creating a market-based solution to avoid deforestation of the rainforest
Rainforest deforestation is a huge threat to the global climate. The goals of the Paris Agreement cannot be achieved without reducing greenhouse gas emissions caused by deforestation and unsustainable land use.
One promising way is to compensate for prevented deforestation by including it in emissions trading schemes. The main idea is to offer sufficient compensation to parties involved in deforestation to stop deforestation. Research into this issue can be seen as part of sustainable finance, a relatively new strand of literature in financial economics.
Although ESG (environmental, social, governance) investors have a growing demand for financial products that mitigate deforestation, the lack of appropriate instruments prevents them from making such investments. The main objective of this research project is to propose a market-based mechanism that creates sufficiently high opportunity costs or incentives for all parties involved in deforestation to stop deforestation activities in exchange for financial compensation. A market-based solution to this is deforestation offsetting, i.e. trading CO2 certificates specifically linked to deforestation. For this purpose, existing relevant systems for trading emission certificates are analysed and proposals for their further development are developed in order to avoid deforestation of the rainforest. Research objects are in particular the compliance markets for emission certificates (such as the EU Emissions Trading Scheme) and the markets for voluntary emission certificates.
Current research projects
Creating a market-based solution to avoid rainforest deforestation (Carsten Müller et al.)
Compliance carbon markets (emission rights markets)
- Inclusion of forest CO2 credits in compliance carbon markets - preliminary results on regulatory and accounting hurdles preventing the integration of forest credits into the EU ETS (Sebastian Bleuel)
- Rethinking voluntary carbon credits in the EU Emissions Trading Scheme: A critical review and a new perspective (Sebastian Bleuel, Carsten Müller, Patrick Behr, Eric Nowak)
Voluntary carbon markets (emission rights markets)
- Redesigning the voluntary market for forest carbon credits: creating a nature premium based on opportunity costs (Papa Orgen)
- Price differentials in voluntary carbon markets (Andre Güttler, Carsten Müller, Papa Orgen)
- Voluntary carbon offsets: A new asset class (Patrick Behr, Carsten Müller, Papa Orgen)
Compliance and voluntary carbon markets (carbon credit markets)
- How do climate policy events influence CO2 pricing in compliance and voluntary carbon markets? (Patrick Behr, Riccardo Cosenza, Eric Nowak, Papa Orgen)
Team
Prof. Dr. Carsten Müller
General Business Administration
carsten.mueller(at)w.hs-fulda.de
+49 661 9640-259
Behr, Patrick/Cosenza, Riccardo/Nowak, Eric/Orgen, Papa: How do Climate Policy Events Shape the Pricing of Carbon in ETS Compliance and Voluntary Carbon Credit Markets? January 2023 (work in progress)
Behr, Patrick/Müller, Carsten/Orgen, Papa: Portfolio Allocation and Optimisation with Voluntary Carbon Offsets: Is it Worth the While? December 2022 (submitted)
Müller, Carsten/Bleuel, Sebastian: Creating a Market-Based Solution to Avoid Rainforest Deforestation, in: Rogall, Holger et al. (eds.): Jahrbuch Nachhaltige Ökonomie 2022: Im Brennpunkt: Wärmewende, Metropolis Verlag, Marburg 2022, pp. 227-239.
Behr, Patrick/Bleuel, Sebastian/Müller, Carsten/Nowak, Eric: Rethinking voluntary carbon offsets in the EU ETS: A critical review, Discussion Paper 22, Discussion Papers in Business and Economics, Fulda University of Applied Sciences, June 2022.
Güttler, André/Müller, Carsten/Orgen, Papa: Price Disparity in Voluntary Carbon Markets (work in progress)
Behr, Patrick/Müller, Carsten/Orgen, Papa: Portfolio Allocation and Optimization with Voluntary Carbon Offsets: Is it Worth the While? 6th International Conference on Social Impact Investments, University of Rome "La Sapienza", 01.12.2022, Best Papers Award
Müller, Carsten/Orgen, Papa: Portfolio Optimization and Allocation with Voluntary Carbon Offsets. Is it Worth the While? Research Day HOLM, 04.11.2022
Behr, Patrick/ Cosenza, Riccardo/Nowak, Eric/Orgen, Papa: How do Climate Policy Events Shape the Pricing of Carbon in ETS Compliance and Voluntary Carbon Credit Markets? Yunus Social Business Center Conference in Sustainable and Socially Responsible Finance, University of Bologna, 06.10.2022
Behr, Patrick/Müller, Carsten/Orgen, Papa: Portfolio Allocation and Optimization with Voluntary Carbon Offsets: Is it Worth the While? Yunus Social Business Center Conference in Sustainable and Socially Responsible Finance, University of Bologna, 06.10.2022
Bleuel, Sebastian/Müller, Carsten: Compatibility of Forest carbon credits under the EU ETS - long-term development potential from an expert perspective, 2nd International Climate Finance Workshop, USI Lugano, 03.10.2022
Behr, Patrick/Müller, Carsten/Orgen, Papa: Portfolio Allocation and Optimization with Voluntary Carbon Offsets: Is it Worth the While? 2nd International Climate Finance Workshop, USI Lugano, 03.10.2022
Behr, Patrick/Müller, Carsten/Orgen, Papa: How do Exogenous Shocks Impact Compliance and Voluntary Carbon Markets? Evidence from the Russia-Ukraine War, 2nd International Climate Finance Workshop, USI Lugano, 03.10.2022
Behr, Patrick/Cosenza, Riccardo/Nowak, Eric/Orgen, Papa: How do Climate Policy Events Shape the Pricing of Carbon in ETS Compliance and Voluntary Carbon Credit Markets? 40th International Energy Workshop, Fraunhofer Institute for Solar Energy Systems ISE, Freiburg, 25-27.05.2022
Orgen, Papa: How do Climate Policy Events Shape the Pricing of Carbon in Compliance and Voluntary Credit Markets? Brown Bag Seminar, University of Ulm, 19.01.2022
Bleuel, Sebastian: Rethinking voluntary carbon offsets in the EU ETS: A critical review and new perspective, PhD Seminar, Hochschule Fulda, 13.12.2021.
Müller, Carsten/Orgen, Papa: Creation of a market-based solution to prevent deforestation of the rainforest: Empirical drivers of voluntary carbon offsets prices - preliminary results, Research Day HOLM, 19.11.2021
Bleuel, Sebastian: Why forest carbon credits have been excluded from trading in the compliance market in the EU, Workshop on Climate Finance, USI Lugano, 24.08.2021
Orgen, Papa: Re-imagining the voluntary market of forest carbon emissions: creating a nature premium based on opportunity costs, Workshop on Climate Finance, USI Lugano, 23.08.2021
Behr, Patrick: The REDD+ database (joint with Eric Nowak and Matteo Pirovano, Swiss Finance Institute, USI Lugano), Workshop on Climate Finance, USI Lugano, 23.08.2021
Bleuel, Sebastian: Including Forest Carbon Credits in the compliance market of the EU ETS through linking, Doktorandenseminar, Hochschule Fulda, 25.06.2021.
Behr, Patrick/Müller, Carsten/Orgen, Papa: Portfolio Allocation and Optimisation with Voluntary Carbon Offsets: Is it Worth the While? World Finance & Banking Symposium, Florida International University, Miami, 17.12.2022
Messages
Global Finance Conference and Ethical Finance and Sustainability Conference
Center for Climate Finance and Sustainability connects scientists
USI Lugano, Ulm University and Fulda University
The project team is made up of employees of Fulda University of Applied Sciences and external project members.
![[Translate to englisch:]](/fileadmin/_processed_/6/2/csm_RET_A04I4119_web_dinias_Mueller_a34f0ee361.jpg "[Translate to englisch:]")
Prof. Dr. Carsten Müller
Professor of General Business Administration
Email: carsten.mueller@w.hs-fulda.de
Contact details
Sebastian Bleuel
Lecturer University of Applied Sciences Fulda
PhD Candidate University of Ulm
PhD Candidate
Email: sebastian.bleuel@w.hs-fulda.de