ICM510: Energy, Carbon and Commodity Markets

Module code: ICM510

Module provider: ICMA Centre; Henley Business School

Credits: 20

Level: 7

When you'll be taught: Semester 2

Module convenor: Dr Mininder Sethi, email: m.sethi@icmacentre.ac.uk

Pre-requisite module(s):

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: No

Talis reading list: No

Last updated: 19 November 2024

Overview

Module aims and purpose

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.  

The module aims to provide students with the ability: 

• To understand and explain the workings of the global energy and commodity markets and their role in the transition to a net-zero economy.  
• To 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.  
• To 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.   

Module 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 and 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 and 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.  

Module 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.

Structure

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. 

Study hours

At least 30 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

50% weighted average mark across assessments. 

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: /cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Weekly MCQ-quizzes on the topics covered during the week with immediate formative feedback. Discussion and feedback on the seminar questions and exercises as part of the seminar discussions. 

Reassessment

Additional costs