ADBI Webinar on Climate Change and Sovereign Risk (54th ADB Annual Meeting Seminar Series)

Event | 5 May 2021
Online

Time of event

15:00–16:30 Manila time / 16:00–17:30 Tokyo time

Summary

Climate change hazards can have substantial negative effects on economic activity in climate vulnerable Asia and the Pacific and also pose risks to the longer-term sustainability of public debt. When sovereign credit risk worsens, the higher cost of borrowing has negative ramifications for important public investment areas, creating additional financial burdens for a government in the long run.

Understanding the implications of climate change for sovereign risk is particularly crucial today, given that public finances are already under considerable strain due to the COVID-19 crisis. The pandemic has highlighted the pressing need for governments to climate-proof their economies and public finances to prevent an ever-worsening spiral of climate vulnerability and unsustainable debt burdens.

This ADBI webinar explored how climate change affects sovereign risk and the significance for economies in Asia and the Pacific, held during the 54th Asian Development Bank Annual Meeting. Part one featured new research on the empirical relationship between climate change and sovereign risk. Part two spotlighted approaches for managing climate-related sovereign risks.

Objectives
  • Examine the material impact of climate change on the cost of sovereign borrowing
  • Assess the channels through which climate change affects sovereign credit risk and the implications for the sustainability of public debt
  • Spotlight best practices and policy recommendations for managing climate-related sovereign risks
Participants
  • Central bankers and other government officials from ADB member economies, field experts, researchers, and interested members of the public
Output
  • Greater understanding of the relationship between climate change and sovereign risk and its implications for economies in Asia and the Pacific
  • Identification of policy recommendations for addressing climate-related sovereign risks
  • Webinar recording and presentations to be uploaded on the ADBI website
Conference Presentations

Climate Change and the Cost of Sovereign Borrowing
John Beirne, Research Fellow, ADBI

Slide

Climate Change and Sovereign Risk
Simon Buckle, Head, Climate Biodiversity and Water Division, Environment Directorate, Organisation for Economic Cooperation and Development (OECD)

Slide

Mitigating and Managing Climate-related Sovereign Risks in Asia and the Pacific: Case of Bangladesh
Nurun Nahar, Joint Chief, Programming Division, Bangladesh Planning Commission, Ministry of Planning

Slide