In recent years, there have been major regulatory efforts to steer the financial system towards financing the transition to a zero-carbon economy and phasing out carbon finance. However, EU regulation focuses primarily on preventing greenwashing in retail funds and decarbonizing the banking system, while the interconnectedness of offshore finance and the shadow banking system remain untouched. These blind spots undermine the effectiveness of regulation, as offshore finance enables the concealment of financial flows, while shadow banking facilitates alternative finance for high carbon emitting companies. Based on qualitative expert interviews and financial market data, the paper explains how the offshore shadow banking nexus hinders the green transition by introducing the concept of "shadow carbon finance", which can operate through the following channels:

1. loan securitization
2. transfer of issuance risk
3. bond finance
4. carbon asset sharing.
5. offshore corporate asset chains
6. private loans
7. securitization of demonstrably developed productive reserves

The [tra:ce] International Center for Sustainable and Just Transformation shows several examples of the shift of financial flows away from regulated and transparent forms of finance towards less regulated and more opaque channels of shadow carbon finance. Consequently, the presenters argue that shadow carbon finance can also pose a significant systemic risk as climate-related risks, such as stranded assets, increasingly accumulate in less regulated parts of the financial system.

The event is free of charge and will be held in English.

You can participate online:
https://uni-wh-de.zoom.us/meeting/register/5IkRqCRWQbSCt3k1vZuPDA ; Code: 223570