In order to meet the Paris Agreement, countries will need to reach net-zero emissions by the middle of the century. This has major implications for economies, creating opportunities in new markets, technologies and products, and risks for those business and sectors that may be left behind.
We analyse socioeconomic characteristics by applying our own toolkit of econometric, sectoral and macroeconomic models to climate and natural catastrophe models. This allows us to understand risks at the levels of assets, sectors, regions, societal groups or entire economies. In developing strategic responses to these risks, SDA offers leading expertise across planning, finance, and political economy. We have specific expertise in real options analysis, which we have applied in the context of climate change to investment decisions in water supply, flood protection, and energy systems.
We are also specialists in the design of carbon markets and their integration within a broader policy suite. Within this, we help business navigate a complex policy landscape, to identify potential risks and capture strategic opportunities. We have a thorough understanding of different carbon strategies and policies worldwide. We are involved in the design, implementation and analysis of carbon pricing instruments around the world and bring this experience and international best practice to projects.
In all areas, we provide thought leadership, actionable advice for governments and the private sector to contribute to a low-carbon economy. We are though leaders on emerging topics in climate and energy, such as climate auctions to help achieve Nationally Determined Contributions and how to allocate mitigation outcomes between climate finance and carbon markets. By working with both public and private sector clients, we understand the imperatives of each and frame our analysis accordingly. We pride ourselves in communicating economic insights in an actionable manner to policy makers and industrial leaders.