Nearly half of the world’s biggest asset owners do nothing to mitigate climate risk.

Extreme weather events and other climate impacts are likely to increase in frequency and have financial implications. While many climate scenarios exist, it is difficult for investors to relate global scale and long-term horizons to actual risks on their investments in specific sectors or locations. Preliminary discussions with institutional investors via the CICERO Climate Finance center have revealed a substantial need for better sectoral and regional information on climate change specifically tailored to their investment decisions.

The primary aim of ClimINVEST is to co-design and co-produce tailored information on climate change with investors.

The envisioned impact is a contribution to capacity building on mitigating and adapting to climate change for investors, improved communication between climate researchers and the financial community, and value-added to facilitated investment decision-making that accounts for physical climate risks, with a potential to increase investment e.g. in climate-resilient infrastructure.

The project started in 2017, and comprises 4 phases in a 3-year schedule:

  • Phase 1: Identification of investors’ needs;
  • Phase 2: Co-design and development of indicators on physical climate risk;
  • Phase 3: Co-design of visualization of indicators;
  • Phase 4: Evaluation and synthesis of project outputs

I4CE’s contribution to ClimINVEST:

  • Phase 1: I4CE’s report “Getting started on Physical climate risk analysis in financeidentifies existing analytical approaches and their potential improvements. It is completed with a synthesis report analyzing investors’ expressed needs in France, the Netherlands and Norway. I4CE contributes to this second report through interviews carried out with financial actors in Paris financial center.
  • Phase 2: I4CE contributes to the development of a network of financial institutions in Paris financial center, to prepare the co-design and co-development of climate indicators in collaboration with the ClimINVEST consortium partners.

The ClimINVEST European Consortium:

The consortium gathers specialists of climate finance; climate science; development and visualization of climate indicators in collaboration with investors.

Led by the Norwegian centre CICERO Climate Finance, the project team includes Wageningen Environmental Research and Climate Adaptation Services from the Netherlands, as well as the French Institute for Climate Economics (I4CE), Météo France and Carbone 4.

For more information, please see the project’s principle website.

Project ClimINVEST is part of ERA4CS, an ERA-NET initiated by JPI Climate, and funded by RCN (NO), ANR (FR), NWO (NL) with co-funding by the European Union (Grant 690462).