ICM2002-Energy, Carbon and Commodity Markets

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2023/4

Module Convenor: Dr Mininder Sethi
Email: m.sethi@icmacentre.ac.uk

Type of module:

Summary module description:

This module introduces students to the role that global energy and commodity markets play in the fight against climate change. Students will explore the use and application of different renewable energy technologies and the global interconnections arising from international energy trading and transportation. This module will also cover how companies can quantify the impact of their greenhouse gas emissions in the form of carbon accounting and disclosure and the role that advances in carbon pricing and carbon trading might play in a transition to a net-zero economy.

Aims:

The module aims to provide students with the ability to (i) understand and explain the workings of the global energy and commodity markets and their role in the transition to a net-zero economy, (ii) understand the key renewable energy technologies as well as the opportunities and challenges that arise from a transition to such technologies on a broad scale, (iii) be able to apply techniques of carbon accounting to quantify the greenhouse gas emissions of a company and then discuss the role of carbon trading to offset such emissions.

The module places no pre-requisite of knowledge in any area of science or mathematics and is designed to be easily understood by students of any academic background. The module is ideal for students who would like to know more about energy finance, carbon and commodity markets and how these can be used as part of the solution to the problems of climate change.  

Assessable learning outcomes:

By the end of the module it is expected that students will be able to:

• Explain how energy is traded in global energy and commodity markets and the challenges arising from global energy trading, including energy transportation. Discuss the role that energy and commodity markets play in the transition to net zero.

• Describe the purpose and different forms of carbon accounting and the role of carbon trading in addressing climate change. Discuss how real option analysis can be applied to capital budgeting decisions in energy companies.

• Describe key ‘brown’ and ‘green/renewable’ energy technologies, their applications as well as their key advantages and disadvantages.

• Reflect on the role of regulation and international standards as well as governments and corporate entities in the global energy transition.

Additional outcomes:

Outline content:

Topic 1: Introduction to Energy and Commodity Markets and Their Link to Climate Change.

Topic 2: Brown Energy and Transition to Net Zero: Oil, Gas and Coal Markets.

Topic 3: Green Energy and Transition to Net Zero: Biofuels, Electro fuels, Nuclear and Renewables.

Topic 4: International Energy Trading and Transportation.

Topic 5: Climate change adaptation: CGIAR and climate-smart crops and livestock.

Topic 6: Carbon Accounting and Disclosure.

Topic 7: Carbon Emissions and Capture, Carbon Trading and Offsets.

Topic 8: Role of Regulation and International Standards.

Topic 9: Emerging Topics in Energy and Commodity Markets.

Global context:

The module explores global trends. International examples are used to illustrate key aspects of digital banking.

Brief description of teaching and learning methods:

• Formal lectures, in which students are strongly encouraged to ask questions.


• Seminars to discuss weekly multiple-choice quizzes and seminar questions.


• Seminars for the discussion of the workings of carbon and commodity markets and of case studies in energy finance.


• Face-to-face/Online availability for student consultation.

Summative assessment- Examinations:

Summative assessment- Coursework and in-class tests:

Individual written coursework assignment (60%) to be submitted in week 3 of the summer term, the report question(s) will be issued to students by week 7 of the spring term. The maximum word count is 3000 words.

In-class test (40%) of duration 1.5 hours to be held on week 2 of the summer term

Formative assessment methods:

Quizzes on lecture material which are then covered in seminars through discussion sessions.

Penalties for late submission:

As per University policy

Assessment requirements for a pass:

50% weighted average mark across assessments.

Reassessment arrangements:

Written coursework assignment only.

Additional Costs (specified where applicable):

Last updated: 13 July 2023