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Sustainable Finance Initiative is a cross-campus effort of the Precourt Institute for Energy.

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SFI: Winter Quarter 2024

CO2 production to reduction

Catch up on the latest with SFI! 

Upcoming Events

SFI Monthly Seminar Series

Are you interested in learning about innovative policy and financial mechanisms designed to rapidly decarbonize the global economy? Join SFI’s monthly seminar to meet researchers working on sustainable finance and to learn about ways to engage with SFI. Visit Stanford Energy's YouTube channel to view recordings from past seminars.

Recent Publications, Podcast, and Videos

Publications:

  • What's Scope 2 Good For? (Marc RostonAlicia Seiger, and Abigail Mathieson): 
    • Under the Greenhouse Gas Protocol, Scope 2 has focused attention on electricity as a contributor to emissions, but it falls short when used for accounting.
    • Carbon solvency, an approach that requires firms to match long-duration emissions as liabilities with carbon removal assets, provides a parsimonious constraint supporting definite net zero claims. This approach allows more effective investment decisions in grid decarbonization and clarifies decision-making for electricity generation methods dependent on variable upstream emissions sources such as hydrogen and biofuels.  
  • Pathways Versus Incentives: Climate Activism to Climate Outcomes (Marc RostonJulien MaireAlicia Seiger, and Thomas Heller):
    • Climate activists have pressured financial institutions to accelerate global decarbonization by aligning portfolios with Paris Agreement transition pathways and targets.
    • As an alternative, we propose Emissions Liability Management (ELM) which treats emissions as liabilities matched by removal assets, enabling firms to maintain emissions solvency. Rather than chasing pathways, ELM provides incentives for emissions reductions and removals consistent with shareholder obligations. By reframing climate action in financial terms, ELM can engage financial markets as agents of change.

Podcast:

  • Climate Finance PodcastAlicia Seiger, SFI Managing Director, joins host Jonas Tobiassen to discuss her climate journey, including Emissions Liability Management and advice to future climate investors, entrepreneurs, and policymakers.

Videos: