The carbon equivalence principle: methods for project finance
A method to price the environmental impact of financial products is proposed
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The carbon equivalence principle states that all financial products shall contain a term sheet of the equivalent carbon flows from greenhouse gases that the financial products cause or enable. This reveals that all existing financial products may already be environment-related. Chris Kenyon, Andrea Macrina and Mourad Berrahoui focus on project finance and show how the costs and risks associated with carbon footprints can be priced. Using a flexible linear
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