What distinguishes this programme from other degrees?
“What makes it unique is that this programme is a collaboration between the Finance department and the Institute for Environmental Studies (IVM), one of the world's leading institutes in sustainability science. The students that follow this programme become experts in both climate science and finance. Given the challenges that are ahead of us, there is a pressing need for people with knowledge from both fields, both within companies and governments and non-profit organizations.”
What was the motivation for starting this programme?
“The climate crisis is not going away, and we need to do as much as we can to preserve the climate. And while it might not be the first thing that comes to mind, experts in finance also need to do their part. Everything in our society, every new project needs financing. So, all organizations, be it a government, a small or big corporation or an NGO, need some understanding of finance. Students of this new programme can go on to finance and run companies in a way that respects the environment.”
What are the career prospects after following this Master’s programme?
“Students who follow this programme get a very solid, fundamental training in finance as well as in climate science. We hear from the industry that there is really a need for experts with knowledge from both fields. But the students can also still apply for more traditional jobs in finance, if that suits them better. And the students can also make a difference in traditionally high-polluting sectors, e.g. construction companies. They need employees who understand the impact that their projects have on the environment. Or the other way around, how climate change and policies will influence their future projects. These employees are very hard to find right now. Companies understand that they need to change their business. Maybe their motivation is driven by self-interest, but in the end it’s the outcome that counts: a greener world.”
What some of the topics that students in climate and sustainable finance will study?
“One possible research topic is the impact of green bonds on climate change mitigation. Students can investigate the effectiveness of green bonds in financing sustainable projects aimed at mitigating climate change. Another example is the role of financial institutions in climate resilience. Students can explore how financial institutions can contribute to enhancing climate resilience in vulnerable regions. And there are plenty of other examples of interesting topics, such as the effect of carbon pricing mechanisms on financial markets, climate-related disclosures and investor decision-making and innovative financing instruments for climate adaptation.”
Learn more
Read more about the Master in Climate and Sustainable Finance on the VU website. For students who are interested in econometrics, there is also the Master specialization Climate Econometrics.