Skip to main content Skip to secondary navigation

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

Transition Pathways

Main content start

Emissions Liability Management (ELM) provides a foundation on which transition pathways can be understood and implemented. Working in partnership with corporates and financial institutions, SFI’s transition pathways research focuses first on understanding the limits of current practices involving financial portfolios and sectoral objectives defined by normative targets and technology futures. We then consider the ways in which ELM serves as a superior framework for firm and investor decision-making. 

ELM can also bring clarity to questions of saleable and tradable assets in the context of implementing Just Energy Transition Partnerships (JETPs), and eliminates the need for crystal balls to predict future technology pathways.

Because ELM creates carbon balance sheets, where firms match long-duration emissions liabilities with duration-matched  removal assets, it helping drives capital allocation towards decarbonization, greatly simplifying current practice around investing and lending in the net zero transition. 


Related Publications