Climate Finance: Difference between revisions

There are two main approaches to climate finance: '''climate investment,''' which involves investing money in companies with low carbon footprint or those that actively address the climate crisis, both for reasons of societal benefit and because these are widely expected to be good investments in the long term, and '''climate analytics,''' which aims to quantify the expected financial impacts of climate change, thereby incentivizing investors and companies to act. ML can help on both of these fronts, on the one hand by in designing portfolios and in timing investments for positive reinforcement of climate-positive investment, and on the other, by helping forecast prices in carbon markets, identifying climate risks and investment opportunities, and quantifying the monetary impact of climate change on supply and demand by using data-based approaches.