01Official WP3 submission
The formal Erasmus+ deliverable for Module 4, built on the official WP3 templates: the Word training document, its PDF, and the summary presentation. These three files are the submission version of 11 September 2026; the second version of 23 September 2026 beside them has the same chapters and figures in revised wording. Everything below them is the extended teaching set that supports delivery.
The same three files under their submission names, with a checksum for each and the convention they are named by, are on the WP3 submission page.
M4_UT.docxM4_UT.pdfM4_Overview.pdfM4_UT.pptxM4_UT_v2.docxM4_UT_v2.pdfM4_UT_v2.pptx02About this module
Module 4 teaches the classification, measurement, and management of climate-related financial risk. Participants work with the TCFD and TNFD frameworks, NGFS scenarios, carbon metrics, Climate Value-at-Risk, and stress testing, and apply each tool to concrete ASEAN cases. The material runs from a foundation level through a quantitative lab to optional PhD extensions, so a mixed audience of policy and analytics staff can all find their level.
Module 4 manages risk; Module 5 reports it. TCFD and TNFD appear here as risk-assessment frameworks. Their disclosure and reporting requirements, with ISSB, SFDR, and CSRD, belong to Module 5.
The money on these pages. An amount written with a dollar sign is United States dollars; Thai baht is written THB and Philippine pesos PHP.
Which instrument each framework is. The recommendations, regulations and scenario vintages behind TCFD, TNFD, NGFS, the EU Taxonomy, SFDR, CSRD, ISSB and the SEC climate rules, each with the date of the act or the release, are set out on the regulatory frameworks page.
Learning outcomes
- Classify climate risks and map their transmission channels into financial institutions.
- Apply the TCFD and TNFD frameworks for internal risk assessment.
- Model climate scenarios using NGFS pathways and Integrated Assessment Models.
- Calculate financed emissions, carbon metrics, and Climate Value-at-Risk.
- Design climate stress tests and evaluate supervisory approaches.
- Evaluate ASEAN climate vulnerability and adaptation finance.
03The six lessons
Each lesson publishes its deck, a companion reader and an exercise set. The exercise sets carry their worked solutions in the same file, so hand a class the exercises and you hand them the answers with it.
Each lesson is available in four formats: a self-paced interactive page, a plain-language companion booklet, the lecture slide deck, and an exercise set. Work through them in order, or open any single resource on its own.
M4_UT_Teaching.pptxM4_UT_Class.pptxM4_UT_Class.pdfThe models behind the six lessons, from carbon price paths to the default probability of a borrower, the capital of a loan book and the weights of a portfolio, are worked through in six 90-minute lectures for a master's in finance, each with its slides and a one-page sheet: Mathematics of green finance risk management.
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01
Climate-Related Financial Risks and Taxonomy
FoundationPhysical, transition, and liability risk; transmission channels; single and double materiality.ASEAN case: Vietnam, the Mekong Delta agricultural portfolio. -
02
TCFD and TNFD Risk Assessment
FoundationThe TCFD four pillars, the Risk Management pillar in depth, and the TNFD LEAP process for nature risk.ASEAN case: Thailand, the Bank of Thailand and the 2011 floods. -
03
Scenario Analysis and Climate Modeling
IntermediateNGFS scenario families, the transmission chain from pathway to portfolio, and Integrated Assessment Models.ASEAN case: the Philippines, typhoons and the cubic wind-damage law. -
04
Carbon Metrics and Climate VaR
Quantitative LabFinanced emissions, Weighted Average Carbon Intensity, data quality, and Climate Value-at-Risk.ASEAN case: Vietnam, the agriculture and coal Climate VaR inversion. -
05
Climate Stress Testing
IntermediateStress-test design, the supervisory landscape, and the path from scenario to post-stress capital adequacy.ASEAN case: Thailand, the 2011 floods and the Bank of Thailand 2050 projection. -
06
ASEAN Climate Vulnerability
CapstoneIntegrated regional risk assessment, the adaptation finance gap, and the bridge to Module 5.ASEAN case: the Philippines, a Category-5 typhoon capstone stress test.
04Participant handout
The take-home reference for the whole module: all six lessons in prose, with worked examples, an ASEAN case study, an assessment with an answer key, and a reading list. Every cited claim carries a footnote to its source. It is not part of the formal submission: the WP3 instruction asks each partner for a PDF of the training material and a PPT summarising the module, both built on the official templates, and this is the University of Twente's own classroom document alongside them.
The teaching deck for all six lessons, and each lesson's own deck, sit with the lessons; the summary presentation is part of the official submission.
05Start-from-scratch companions
Seven short booklets teach every idea in the module from zero, assuming no prior knowledge of finance or climate science. Each defines the terms its lesson takes for granted, builds the core concept in plain language with one worked example, and points to the matching handout chapter and slide deck. Start with the overview, then read each companion before its lesson.
06Licence and reuse
Module 4 is developed by the University of Twente and released under a Creative Commons Attribution 4.0 International licence (CC BY 4.0). It may be reused, adapted, and redistributed, including commercially, provided appropriate credit is given to the University of Twente and the GREEN FINANCE project.
Taking the module elsewhere
Everything on this page may be taught, translated, cut down and rebuilt, by anybody, without asking. What the licence asks in return is the attribution line above. The material is dated. Every figure carries the source of its numbers on its own face; where that source has since published a newer number, redraw the figure from it and say so in the caption. A question about the module, a correction, or a request for the LaTeX and Python behind a figure goes to Joerg Osterrieder, University of Twente, joerg.osterrieder@utwente.nl. The module sits in a five module curriculum, described at the curriculum overview, and it is taught to partner staff at the University of Twente, 13 to 16 October 2026.
What each file weighs, and how long it is
Every file on this page carries the same licence. Attribution reads: Module 4: Green Finance Risk Management, University of Twente, GREEN FINANCE (Erasmus+ CBHE, Grant 101237817), CC BY 4.0.
Use of generative AI
Generative AI was used as a writing and research assistant in preparing this module. The tool was Claude (Anthropic), versions Opus 4.8, Opus 5 and Opus 5.5, used from July 2026 to 8 October 2026. Its use was confined to idea generation and brainstorming, language editing, literature classification, coding assistance for the chart and data-processing scripts, checking recorded numbers and quotations against their published sources, and interactive literature searching. The authors specified and reviewed the content. Every cited source was checked against the original publication, and every figure states its provenance on its own face, distinguishing sourced values from derived values and from illustrative teaching assumptions. The authors remain fully responsible for the originality, accuracy, integrity, references, and conclusions of the material.