• Jac McCluskey

  • Theme:Transport Policy & Economics
  • Project:A green bond for the finance of low-carbon bus operations
  • Supervisor: Charles Larkin ,Winifred Huang
  • The Gorgon's Head - Bath University Logo
  • Research journey


Jac graduated from the University of Bath with a first class degree in Economics. Prior to joining AAPS, Jac worked as an intern research economist for the Institute for Policy Research (IPR) to help determine the feasibility of operating low-emission buses in Dublin. Moreover, during his time as leader of the sustainable transport Vertically Integrated Project (VIP), Jac helped to produce an "E-Scooter Impact Report" for B&NES Council. The policy proposals derived from this research were later discussed in a meeting with local policy makers.



  • I played for Brighton's community team in a Dutch football tournament
  • There are more than 5 films which I have watched over 20 times
  • I won a chilli eating competition at a university curry club social
  • If you see me at Karaoke, I will be singing "Escape" (AKA the pina colada song)
  • I was named after my great uncle Jackie - a Jesuit priest who worked as a teacher in Ghana

A green bond for the finance of low-carbon bus operations

Jac’s research will deliver a green bond designed to finance low-carbon bus operations. This document will provide asset specifications (e.g., par value, issue price, coupon rate, and an expected credit rating), a sector/business breakdown (e.g., profitability, liquidity, solvency, legislation, and identified risks), and evidence of alignment to the ICMA green bond principles and UK taxonomy. The value added of Jac’s research will be the integration of a novel probability of default (PD) model which considers the cashflows associated with various "real options". 

This topic is important because most UK bus operators cannot afford to decarbonise their fleets, especially post-Brexit due to the absence of the EIB lending facility. The UK government’s recent strategy has revolved around centralised public procurement; however, this is both insufficient and unsustainable. It follows that the market needs a green financial instrument to raise private investment for low-carbon bus operations.

Jac’s methodology will be strongly based around Moody’s credit rating methodology, and the ICMA and CBI green bond handbooks. Moreover, there will be careful consideration of legal requirements and documentation surrounding bond issuance and the bus sector.

© Copyright 2021 AAPS CDT, Centre for Doctoral Training in Advanced Automotive Propulsion Systems at the University of Bath