We have reviewed the network of organisations involved in decarbonisation finance and have employed algorithmic analysis as well as mixed methods research designs to comprehensively determine risks in these financial instruments.

Our overall aim has been to define the risk management profile of decarbonisation funding in the UK and Europe. Our findings will aid capital distribution and resource allocation strategies, and examine the compliance of such strategies with green finance and environmental monitoring regulations.

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Green Bond framework documents stipulate what will be the use of proceeds from the bond i.e. green infrastructure, investment in green technology etc.  Framework documents also specify what are the project selection success and targets, stipulating penalties if these are not reached as well as the environmental impact of fund disbursement on climate mitigation and carbon neutralisation. For industrial decarbonisation to proceed at pace there has to be an equivalent speed in funding innovation in decarbonization. This depends on issuers and underwriters understanding the risks associated with this funding, which in turn depend on a complex set of interrelated socioeconomic systems.  Our project provides a comprehensive understanding of these risks as guidance to industry standards and policy.