Managing Climate Risk in the U.S. Financial System

Managing Climate Risk in the U.S. Financial System PDF

Author: Leonardo Martinez-Diaz

Publisher: U.S. Commodity Futures Trading Commission

Published: 2020-09-09

Total Pages: 196

ISBN-13: 057874841X

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This publication serves as a roadmap for exploring and managing climate risk in the U.S. financial system. It is the first major climate publication by a U.S. financial regulator. The central message is that U.S. financial regulators must recognize that climate change poses serious emerging risks to the U.S. financial system, and they should move urgently and decisively to measure, understand, and address these risks. Achieving this goal calls for strengthening regulators’ capabilities, expertise, and data and tools to better monitor, analyze, and quantify climate risks. It calls for working closely with the private sector to ensure that financial institutions and market participants do the same. And it calls for policy and regulatory choices that are flexible, open-ended, and adaptable to new information about climate change and its risks, based on close and iterative dialogue with the private sector. At the same time, the financial community should not simply be reactive—it should provide solutions. Regulators should recognize that the financial system can itself be a catalyst for investments that accelerate economic resilience and the transition to a net-zero emissions economy. Financial innovations, in the form of new financial products, services, and technologies, can help the U.S. economy better manage climate risk and help channel more capital into technologies essential for the transition. https://doi.org/10.5281/zenodo.5247742

Strengthening Infrastructure Governance for Climate-Responsive Public Investment

Strengthening Infrastructure Governance for Climate-Responsive Public Investment PDF

Author: International Monetary

Publisher: International Monetary Fund

Published: 2021-12-22

Total Pages: 38

ISBN-13: 1616355093

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Countries have committed, through the Paris Agreement and the Sustainable Development Goals (SDGs), to pursue climate targets and policies that would limit global temperature rise to well below 2 degrees Celsius, compared to pre-industrial levels. A shift toward green public investment will help to mitigate greenhouse gas (GHG) emissions. In addition, substantial public investment will be necessary to build public infrastructure that makes economies more resilient to climate change and related natural disasters. Climate change mitigation and adaptation challenges thus compound preexisting needs for public investment to foster the economic recovery from the pandemic and to meet the SDGs in a broader range of areas, often in a context of limited fiscal space. Against this backdrop, a priority for all countries is to manage their public investment efficiently and effectively. To help countries improve the institutions and processes for infrastructure governance (the planning, allocation, and implementation of public investment), the IMF developed in 2015 the Public Investment Management Assessment (PIMA), which has already been applied in over 70 countries. However, the current PIMA does not provide a sufficiently tailored assessment of how public investment management can support climate change mitigation and adaptation. To fill this gap, this paper introduces a new module to the to the current Public Investment Management Assessment (PIMA) framework, the “Climate-PIMA” (C-PIMA), whose goal is to help governments identify potential improvements in public investment institutions and processes to build low-carbon and climate-resilient infrastructure.

Climate Adaptation Finance and Investment in California

Climate Adaptation Finance and Investment in California PDF

Author: Jesse M. Keenan

Publisher: Routledge

Published: 2018-10-26

Total Pages: 145

ISBN-13: 0429677057

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This book serves as a guide for local governments and private enterprises as they navigate the unchartered waters of investing in climate change adaptation and resilience. This book serves not only as a resource guide for identifying potential funding sources but also as a roadmap for asset management and public finance processes. It highlights practical synergies between funding mechanisms, as well as the conflicts that may arise between varying interests and strategies. While the main focus of this work is on the State of California, this book offers broader insights for how states, local governments and private enterprises can take those critical first steps in investing in society’s collective adaptation to climate change.

Climate Change Risk Management in Banks

Climate Change Risk Management in Banks PDF

Author: Saloni P. Ramakrishna

Publisher: Walter de Gruyter GmbH & Co KG

Published: 2023-12-04

Total Pages: 362

ISBN-13: 3110757974

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Banks, like other businesses, endeavor to drive revenue and growth, while deftly managing the risks. Dubbed the next "frontier" in risk management for financial services, climate related risks are the newest and potentially the most challenging set of risks that banks are encountering. On the one hand, banks must show their commitment to becoming net zero and, on the other, help their customers transition to more sustainable operations, all this while managing climate-related financial risks. It is a paradigm shift from how the banking industry has traditionally managed risks as climate change risks are complex. They are multilayered, multidimensional with uncertain climate pathways that impact real economy which in turn influences the financial ecosystem in myriad ways. Climate Change Risk Management in Banks weaves the complete lifecycle of climate risk management from strategy to disclosures, a must-read for academics, banking professionals and other stakeholders interested in understanding and managing climate change risk. It provides much-needed insights, enabling organizations to respond well to these new risks, protect their businesses, mitigate losses and enhance brand value. Saloni Ramakrishna, an acknowledged financial industry practitioner, argues that given the uncertain and volatile climate paths, complex geopolitical patterns, and sustainability challenges, banks and business professionals will benefit from a wholistic approach to managing climate change risks. The book provides a blueprint and a cohesive framework for embracing and maintaining such an approach, in a simple and structured format.

OECD Development Policy Tools The Role of Sovereign and Strategic Investment Funds in the Low-carbon Transition

OECD Development Policy Tools The Role of Sovereign and Strategic Investment Funds in the Low-carbon Transition PDF

Author: OECD

Publisher: OECD Publishing

Published: 2020-06-25

Total Pages: 40

ISBN-13: 9264680756

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This report provides guidance on how governments can support their sovereign wealth funds in becoming climate-aligned commercial investors. The establishment of synergies between sovereign wealth funds and strategic investment funds can help scale up investments in clean-energy infrastructure.

Managing Climate Change Business Risks and Consequences

Managing Climate Change Business Risks and Consequences PDF

Author: J. Stoner

Publisher: Springer

Published: 2012-02-29

Total Pages: 253

ISBN-13: 1137011432

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Although the title of this volume and its major focus will be on one major aspect of global sustainability - climate change - this volume continues with the overall framing of the series: global sustainability is a multi-faceted, global, multi-generational, economic, social, environmental, and cultural phenomenon and challenge to our species.

Sustainability and Financial Risks

Sustainability and Financial Risks PDF

Author: Marco Migliorelli

Publisher: Springer Nature

Published: 2020-09-17

Total Pages: 143

ISBN-13: 303054530X

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Despite growing discussions on the relationship between sustainability and finance, so far little attention has been given to the relation linking sustainability-related risks and financial risks. Climate change, environmental degradation and social inequality, among others factors, may indeed have considerable adverse impacts on financial actors and markets, and even have the potential to harm financial stability. Shedding light on the importance of the nexus between sustainability and financial risks, this book addresses the need for new industry and policy approaches. With insights from a skilled set of scholars in the finance field, this edited collection explores the effects of climate risks on the banking and insurance industries, the problem of stranded assets, the possible corporate risk management frameworks that could be used to control sustainability-related risks, the role of non-financial disclosure in fostering market discipline, and the policy actions needed to integrate sustainability considerations into prudential supervision. Tackling an interdisciplinary topic, this book will appeal to academics and practitioners within the finance, business and sustainability fields.

Planning for Climate Change

Planning for Climate Change PDF

Author: Simin Davoudi

Publisher: Routledge

Published: 2009-09-02

Total Pages: 345

ISBN-13: 113657400X

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Climate change is changing the context of spatial planning and shaping its priorities. It has strengthened its environmental dimension and has become a new rationale for coordinating actions and integrating different policy priorities. This book sets out the economic, social and environmental challenges that climate change raises for urban and regional planners and explores current and potential responses. These are set within the context of recent research and scholarly works on the role of spatial planning in combating climate change. Addressing both mitigation measures for reducing greenhouse gas emissions and adaptation to the effects of climate change, the book provides an overview of emerging practice, with analysis of the drivers of policy change and practical implementation of measures. It scopes planning issues and opportunities at different spatial scales, drawing on both the UK and international experiences and highlighting the need to link global and local responses to shared risks and opportunities.

Climate Change

Climate Change PDF

Author: Juan A. Blanco

Publisher: BoD – Books on Demand

Published: 2011-09-06

Total Pages: 506

ISBN-13: 9533076216

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This book provides an interdisciplinary view of how to prepare the ecological and socio-economic systems to the reality of climate change. Scientifically sound tools are needed to predict its effects on regional, rather than global, scales, as it is the level at which socio-economic plans are designed and natural ecosystem reacts. The first section of this book describes a series of methods and models to downscale the global predictions of climate change, estimate its effects on biophysical systems and monitor the changes as they occur. To reduce the magnitude of these changes, new ways of economic activity must be implemented. The second section of this book explores different options to reduce greenhouse emissions from activities such as forestry, industry and urban development. However, it is becoming increasingly clear that climate change can be minimized, but not avoided, and therefore the socio-economic systems around the world will have to adapt to the new conditions to reduce the adverse impacts to the minimum. The last section of this book explores some options for adaptation.