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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As part of this year’s online World Water Week at Home, adelphi and IHE Delft convened the workshop "Water diplomacy: a tool for climate action?". The workshop reflected on the role that foreign policy can play in mitigating, solving and potentially preventing conflicts over the management of transboundary water resources, especially in a changing climate.
The Cerrado, a tropical savannah region located in Central Brazil, is nearly half as large as the Amazon and a deforestation hotspot. Yet little attention is paid to this important biome. That has to change.
China’s Belt and Road Initiative projects may exacerbate the risk of climate-related instability across the Middle East in the long term.
With the European Green Deal, the European Commission under President Ursula von der Leyen has committed to accelerating decarbonisation in Europe as a major priority. The report "The Geopolitics of Decarbonization: Reshaping European Foreign Relations" shows how the EU’s external relations need to evolve to adequately reflect the political, economic and social outcomes of this process.