The global transition to a low-carbon economy is a historic and necessary shift, but it comes with a complex set of macroeconomic consequences. Policies designed to accelerate this transition, particularly carbon pricing, can introduce significant inflationary pressures by raising the cost of fossil fuels and the goods and services that rely on them. This phenomenon, sometimes called "greenflation," poses a new challenge for policymakers, who must balance the urgent need for climate action with the imperative to maintain price stability and protect vulnerable households from rising living costs. The strategic choices made in this transition will determine not only the pace of decarbonization but also the path of global inflation.

This program provides a comprehensive and practical deep dive into the intricate relationship between climate policy and its inflationary consequences. Participants will gain a fundamental understanding of how different carbon pricing mechanisms—from taxes to emissions trading schemes—transmit price signals through the economy and create both direct and indirect inflationary effects. The course will address the challenges of policy coordination, exploring how central banks can respond to these supply-side shocks without destabilizing the economy. By focusing on real-world case studies and robust analytical frameworks, attendees will be equipped to analyze risks, anticipate price shocks, and contribute to the development of equitable and effective climate policies.

Duration: 10 days

Target Audience:

• Central Bank Officials and Economists
• Environmental Economists and Researchers
• Public Policy and Treasury Officials
• Corporate Strategists and Sustainability Officers
• Financial Analysts and Investors
• Energy and Utility Industry Professionals
• NGO and Environmental Advocacy Leaders
• Trade Negotiators and Regulators
• Academics and Graduate Students
• Journalists and Economic Reporters

Objectives:

• Master the core principles of carbon pricing and its economic effects.
• Learn to identify the transmission channels from climate policy to inflation.
• Understand the fiscal and monetary policy challenges of the green transition.
• Grasp the complexities of "greenflation" and its drivers.
• Develop proficiency in modeling the inflationary impact of climate policy.
• Explore best practices for managing the social and distributional effects.
• Learn about robust methods for designing equitable carbon pricing schemes.
• Identify the critical legal and governance frameworks for climate action.
• Develop skills in translating climate science into macroeconomic analysis.
• Formulate strategies for building a more sustainable and stable economy.

Course Modules:

Module 1: The Economics of Climate Change

• The theory of externalities and market failure
• The social cost of carbon
• The role of a "clear and focused research question"
• The economic case for climate action
• The importance of a "risk and mitigation" plan

Module 2: Carbon Pricing Mechanisms

• The design of a carbon tax vs. emissions trading system (ETS)
• The use of a simple scorecard and a dashboard
• The use of border carbon adjustments (BCAs)
• The role of a "data story map"
• The challenges of price volatility in an ETS

Module 3: Inflationary Pathways

• The direct impact on energy and fuel prices
• The importance of a "clear and consistent reporting style"
• The indirect impact on the prices of goods and services
• The role of a program's theory of change
• The effect on inflation expectations

Module 4: "Greenflation" and its Drivers

• The definition of "greenflation"
• The importance of a "stakeholder analysis"
• The role of a clear and compelling KPI
• The impact of high demand for green minerals and technologies
• The challenges of supply bottlenecks

Module 5: Monetary Policy Challenges

• The role of central banks in the energy transition
• The importance of a "risk and mitigation" plan
• The conflict between a price stability mandate and a climate goal
• The use of a simple scorecard and a dashboard
• The challenges of modeling supply-side shocks

Module 6: Fiscal Policy and Redistribution

• The use of carbon tax revenue for redistribution
• The importance of a "data story map"
• The design of a "carbon dividend" or rebate
• The use of a "clear and consistent reporting style"
• The role of a program's theory of change

Module 7: Sectoral Impacts

• The inflationary impact on the energy sector
• The use of a "stakeholder analysis"
• The effect on agriculture and food prices
• The role of a clear and compelling KPI
• The impact on transportation and logistics

Module 8: The Role of a "Clear and Focused Research Question"

• The importance of a "risk and mitigation" plan
• The use of a simple scorecard and a dashboard
• The role of a "data story map"
• The use of a "clear and consistent reporting style"
• The role of a program's theory of change

Module 9: Modeling and Forecasting

• The use of computable general equilibrium (CGE) models
• The importance of a "stakeholder analysis"
• The challenges of a "clear and compelling KPI"
• The use of scenario analysis and stress testing
• The role of a "clear and focused research question"

Module 10: Legal and Governance Frameworks

• The role of international climate agreements
• The use of a "risk and mitigation" plan
• The legal challenges of carbon pricing
• The use of a simple scorecard and a dashboard
• The importance of a "data story map"

Module 11: International Cooperation

• The role of a "clear and consistent reporting style"
• The challenges of a fragmented global carbon market
• The use of a program's theory of change
• The importance of a "stakeholder analysis"
• The use of a clear and compelling KPI

Module 12: Corporate Strategy

• The importance of a "clear and focused research question"
• The role of a "risk and mitigation" plan
• The use of a simple scorecard and a dashboard
• The impact of carbon pricing on a company's bottom line
• The importance of a "data story map"

Module 13: Policy Communication

• The challenges of communicating the costs and benefits of climate policy
• The use of a "clear and consistent reporting style"
• The role of a program's theory of change
• The importance of a "stakeholder analysis"
• The use of a clear and compelling KPI

Module 14: The Future of Climate Economics

• The role of green monetary policy
• The importance of a "clear and focused research question"
• The use of a "risk and mitigation" plan
• The challenges of climate-related financial risks
• The use of a simple scorecard and a dashboard

Module 15: The Role of a "Data Story Map"

• The importance of a "clear and consistent reporting style"
• The role of a program's theory of change
• The importance of a "stakeholder analysis"
• The use of a clear and compelling KPI
• The importance of a "clear and focused research question"

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.