Financial risks, the energy transition and climate change

Context :

This research area focuses on the inclusion of climate-related risks in financial risk analysis frameworks and management processes. Climate-related risks include both “physical climate risk” and “low-carbon transition risks” stemming from changes in the regulatory environment and the public policies used to “mainstream” long-term climate objectives into the broader economy. Our current work focuses on the link between leveraging the financial system to support the energy transition and the perceptions of financial sector actors of climate-related risks. This includes an assessment of the incentives as well as the metrics and internal procedures structuring the analysis and internalization of broader financial risks. Part of this research is a partnership with the French Agency for the Environment and Energy Management (ADEME) and the EconomiX Laboratory.

Partners: 

AFD; ADEME ; Laboratoire EconomiX (Université Paris Ouest Nanterre la Défense)

Delivrables:

Scholarly articles ; Working papers