Climate Action Economics: Economics of Climate Change and Carbon Pricing Training Course

Introduction

Climate change presents the most significant economic, social, and environmental challenge of our time, demanding a profound understanding of its multifaceted impacts and the effective tools to mitigate its worst effects. It is no longer solely an environmental issue; its economic ramifications – from disrupted supply chains and increased disaster frequency to stranded assets and pressures on public finance – necessitate robust economic analysis and innovative policy solutions. Carbon pricing, as a market-based mechanism, stands out as a crucial instrument in steering economies towards a low-carbon future, but its design and implementation are fraught with economic complexities.

This intensive training course is meticulously designed to equip participants with a comprehensive and practical understanding of the economics of climate change and the intricate world of carbon pricing. From dissecting the science and economic impacts of climate change to mastering the design principles of carbon taxes and emissions trading systems, you will gain the expertise to analyze, evaluate, and contribute to climate policy formulation. This empowers you to engage in evidence-based discussions, design effective climate strategies, and contribute to a sustainable and resilient global economy.

Target Audience

  • Economists and policy analysts in government ministries (e.g., finance, environment, energy, planning).
  • Environmental professionals and sustainability managers in the private sector.
  • Researchers and academics in environmental economics, climate policy, and related fields.
  • International development practitioners and climate finance specialists.
  • Regulatory bodies overseeing energy markets and emissions.
  • NGO staff and climate advocates.
  • Urban planners and infrastructure developers.
  • Graduate students (Master's and PhD) in economics, public policy, and environmental studies.

Duration: 10 days

Course Objectives

Upon completion of this training course, participants will be able to:

  • Understand the scientific basis and economic dimensions of climate change.
  • Grasp the concepts of externalities, public goods, and market failures in the context of climate change.
  • Analyze the economic costs and benefits of climate change impacts, mitigation, and adaptation.
  • Comprehend the theory and practice of carbon pricing mechanisms: carbon taxes and emissions trading systems (ETS).
  • Evaluate the design considerations, economic impacts, and practical challenges of implementing carbon pricing.
  • Develop practical skills in assessing policy effectiveness and designing optimal climate policies.
  • Navigate international climate policy frameworks and the role of carbon markets.
  • Formulate evidence-based recommendations for integrating climate action into economic policy.

Course Content

  1. Science and Economics of Climate Change: The Fundamentals
  • The science of climate change: greenhouse gases, global warming, climate models
  • Economic characteristics of climate change: global public good, long time horizons, irreversibility, uncertainty
  • Market failures and climate change: externalities, tragedy of the commons
  • Economic impacts of climate change: agriculture, health, infrastructure, biodiversity
  • Discounting the future: ethical and economic considerations in climate policy
  1. Economic Valuation of Climate Impacts
  • Methodologies for valuing environmental goods and services
  • Damage functions and integrated assessment models (IAMs)
  • Cost-benefit analysis of climate change mitigation and adaptation
  • Challenges in quantifying climate damages and benefits
  • The social cost of carbon: estimation and application
  1. Policy Instruments for Climate Change Mitigation
  • Overview of policy instrument types: command-and-control, market-based instruments, information-based approaches
  • Comparison of efficiency and equity across different policy tools
  • Role of technology innovation and deployment in mitigation
  • Sectoral approaches to decarbonization (energy, transport, industry, agriculture)
  • Policy mixes: combining instruments for optimal outcomes
  1. Carbon Pricing I: Carbon Taxes
  • Theory of carbon taxes: correcting the negative externality
  • Design considerations for carbon taxes: tax rate, scope, revenue recycling mechanisms
  • Economic impacts of carbon taxes: competitiveness, distributional effects
  • Case studies of carbon tax implementation globally
  • Political economy challenges and public acceptance strategies
  1. Carbon Pricing II: Emissions Trading Systems (ETS)
  • Theory of ETS: cap-and-trade mechanism, permit allocation (auctioning vs. free allocation)
  • Market design elements: price collars (floor and ceiling), offsets, banking and borrowing
  • Economic impacts of ETS: price volatility, market efficiency, distributional effects
  • Case studies of major ETS (e.g., EU ETS, California ETS, China ETS)
  • Linking ETS and international carbon markets
  1. Complementary Policies and Low-Carbon Transitions
  • Subsidies and incentives for renewable energy and energy efficiency
  • Standards and regulations (e.g., fuel efficiency standards, building codes)
  • Green industrial policy and public procurement
  • Research, Development, and Demonstration (RD&D) for clean technologies
  • Strategies for a just transition: addressing social and economic impacts on vulnerable communities
  1. International Climate Policy and Cooperation
  • Evolution of international climate agreements: UNFCCC, Kyoto Protocol, Paris Agreement
  • Nationally Determined Contributions (NDCs) and their economic implications
  • Mechanisms for international cooperation: Article 6 of the Paris Agreement (carbon markets, non-market approaches)
  • Climate finance: role of developed countries, multilateral funds
  • Addressing climate change in developing economies: equity and common but differentiated responsibilities
  1. Climate Finance and Green Investment
  • Public and private finance for climate action
  • Green bonds, sustainability-linked loans, and other innovative financial instruments
  • Climate risk in financial markets: physical and transition risks
  • Sustainable finance and ESG (Environmental, Social, Governance) investing
  • Role of central banks and financial regulators in addressing climate risk
  1. Adaptation Economics and Resilience
  • Economic impacts of climate change that cannot be avoided: the need for adaptation
  • Costs and benefits of adaptation strategies: infrastructure, early warning systems, ecosystem-based adaptation
  • Financing adaptation in developing economies
  • Measuring climate resilience at local, national, and sectoral levels
  • Integrating adaptation into development planning
  1. Future of Climate Economics and Policy Outlook
  • Behavioral economics and climate action: nudges and decision-making
  • The role of digitalization and AI in climate change mitigation and adaptation
  • Circular economy principles and resource efficiency
  • Carbon Dioxide Removal (CDR) technologies and their economic implications
  • Pathways to net-zero emissions and the role of long-term strategies.

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

Climate Action Economics: Economics Of Climate Change And Carbon Pricing Training Course in Kenya
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