The price of carbon is expected to soar in the coming years, as compliance carbon schemes ­– especially the European Union Emissions Trading System (EU ETS) – change and expand, heaping significant costs on corporates and industrials. This presents both risks and opportunities to lenders and investors, who will need to identify the winners and losers in their portfolios and understand which firms are mispriced.

While many banks have calculated their financed emissions and some are using metrics