As we approach COP29, modelling the relationship between climate variables – such as temperature and precipitation – and economic output offers valuable insights into the potential economic damage resulting from future climate change (Bilal and Rossi-Hansberg 2023). However, researchers encounter substantial uncertainty when examining these impacts (Aerts et al. 2024), which leads to a wide […]
Climate-related risks are now a recognised factor in financial decision-making and therefore in the prices of assets. Two types of climate-related risks are generally recognised: transition risks and physical risks. Transition risks arise because of changes in policies, technologies, and consumer and investor preferences that are already occurring and will need to occur in the […]
Biodiversity is the foundation of a healthy planet and key to sustainable development. Diverse ecosystems provide clean water and food and regulate our climate, supporting both well-being and economic progress. Forests, oceans, and wetlands help stabilize the climate, protect against natural disasters, and support livelihoods in agriculture, fisheries, and ecotourism. As climate change and habitat destruction […]
Many financial institutions have pledged to minimise their exposure to climate transition risks. But moving assets away from sectors with high emissions is sometimes at odds with supporting climate transition investments, as sectors with high emissions – such as utilities and transportation – require capital to invest in greener technologies. This column analyses the tension […]
