Regulating Green Finance: Europe & Asia (LAWS90321)

The imperative to quickly mobilise sufficient capital to address sustainability issues such as climate change, requires legal and regulatory initiatives that can not only harness but also discipline financial institutions and companies.  

Can law and regulation help to mainstream green finance, transform business-as-usual, and overcome entrenched institutional and behavioural obstacles for planetary sustainability while accounting for local context and divergent cultural norms? If so, to what extent and how? 

This subject explores and compares regulatory initiatives for green finance at national and regional levels by focusing on Europe and Asia; and scrutinises the necessary but contested roles of private sector financial actors in an evolving sustainability governance matrix. Rather than focusing on transactional accounts of sustainable finance, we emphasise conceptual, regulatory, and justice perspectives.  

The intellectual challenge for students in this subject will be to think about different public and private regulatory approaches to green finance and how to critique them in the context of complex issues like climate change and a just transition to net zero. We take a cross-jurisdiction comparative study, which provides a platform for students from different legal traditions to share their knowledge and experiences concerning the governance and financing of sustainability imperatives and climate change in particular. We also draw upon experiences of empirically-informed regulation and governance and we encourage critical thinking about whether, and to what extent, common themes can be discerned from financial and corporate interaction with sustainability issues and to re-imagine legal frameworks that are ‘fit for purpose’ in an unprecedented business environment. 

This subject does not require mathematical or statistical knowledge. 

Intended learning outcomes

A student who has successfully completed this subject should be able to: 

• Examine and accurately explain the emerging law and regulation for green finance in Europe and Asia.
• Critically analyse the efficacy of that law and regulation for addressing sustainability issues like the climate crisis and make recommendations accordingly.
• Critically evaluate the role and impact of private sector actors in areas of public concern.
• Analyse the justice dimensions of green finance, focusing on concepts such as a 'just' transition, legal readiness for climate finance, and the inclusion of diverse voices in sustainability governance.
• Evaluate emerging regulatory frameworks, such as transition plan frameworks and climate-related disclosure requirements, and their implications for corporate governance and accountability.
• Propose innovative legal and regulatory solutions for sustainable commerce and finance that are adaptable to different jurisdictions and cultural contexts.

Generic skills

• Demonstrate a critical understanding of the application and implications of subject material in responsible legal and business practice.
• Demonstrate a commitment to professionalism through self-reflection and by modelling professional behaviours, which include meeting deadlines and communicating non-discriminatorily.