On November 25th, 2025, EDHEC Business School hosted Professor Niels Gormsen, Associate Professor of Finance at the University of Chicago Booth School of Business, for a webinar exploring the concept of climate capitalists and the role of financial markets in supporting the green transition.
In this talk, Professor Gormsen addressed a central question: can cheaper green capital act like a carbon tax? Drawing on evidence from corporate earnings calls, he showed that greener firms perceive a lower cost of capital, around one percentage point less than their brown counterparts.
He explained how this “green discount” contributes to reallocating investment both across and within firms, and how sector-level green–brown spreads relate to emissions pledges. The discussion highlighted how market-based mechanisms may complement traditional carbon pricing policies.
Speaker
Niels Gormsen, PhD
Associate Professor of Finance, University of Chicago Booth School of Business
Moderators
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Gianfranco Gianfrate, PhD
Professor of Finance, EDHEC Business School, Research Director, EDHEC Climate Institute
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Emmanuel Jurczenko, PhD
Executive Director of Graduate Finance Programmes, EDHEC Business School
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Carine Cachot
MSc student in Climate Change & Sustainable Finance, EDHEC Business School
This session provided valuable insights into the interaction between capital markets, corporate investment, and climate policy, contributing to the ongoing debate on how financial incentives can support the transition toward a low-carbon economy.
