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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The impact of climate change is posing a growing threat to peace and security. Germany is therefore putting climate and security on the Security Council’s agenda.
Russia’s economic development minister warned last week that the EU’s plans to deploy a carbon tax at the bloc’s borders will not be in line with World Trade Organisation (WTO) rules, just as Brussels doubled down on the idea of green tariffs.
Few places have suffered more from the COVID-19 pandemic than southern China, the region where the novel coronavirus was first detected in the city of Wuhan. But it turned out that the pandemic is not the only calamity to befall south China this year. The region has been inundated by heavy rainfall since late May, creating a risk of catastrophic flooding.
Natural resources-based conflicts are sometimes made complex by non-climate push and pull factors, like unemployment and political tension. These factors should be taken into account when developing and implementing a peacebuilding strategy, making sure all stakeholders are at the table – including those fueling the conflict. The online workshop ‘Integrating peacebuilding and climate change mitigation efforts in natural resource management’, organised by the European Peacebuilding Liaison Office (EPLO) and adelphi, looked into this complex issue.