Investors are, by necessity, experts at taking calculated risks. They scan the horizon of our ever-evolving world for new and sometimes unexpected economic challenges so that they can put their money where it’s most likely to grow. Today, financial institutions are facing one economic challenge that will fundamentally change the way we do business—climate change.
Climate change is a risk that, while significant, is oftentimes misunderstood by the financial community. A warmer world introduces new, complex and interwoven layers of risks ranging from physical, financial, regulatory and reputational. So WRI and the UNEP Finance Initiative (UNEP FI) worked with more than 150 participants from the financial sector to create the Carbon Asset Risk Discussion Framework, a tool to help financial institutions undertake the difficult task of identifying and understanding climate-related risks to their portfolios.
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In some areas of the world, including Central America, rising sea levels and declining agricultural productivity due to climate change are expected to trigger major migratory flows, especially within countries. The role of policy-makers is it to promote local solutions while engaging in regional cooperation for a preventative approach.
What outcomes do the agreements achieved at COP24 hold for cities and regions? Despite the decisive part the so-called non-state actors play in achieving the international climate goals, their role hasn't been formally recognized by the UNFCCC.
The Kigali Amendment to the Montreal Protocol, concluded in October 2016, has entered into force on January 1st, 2019. Its 65 signatories are now on the fast track to significantly reducing the use of harmful greenhouse gases in the production of cooling devices, representing a major step towards achieving the goals of the Paris Agreement. After a season of unsatisfying climate negotiations, the amendment's implementation marks a time of action and reminds the international community why climate diplomacy ultimately pays off.
In many ongoing armed conflicts, water has been used as a weapon of war, but it can also be a strong instrument of peace.