Time of Event

10:00–11:00 Tokyo time

Summary

Climate change poses a serious threat to development in climate-vulnerable countries and can have material impacts on sovereign risk and threaten debt sustainability. The number and intensity of extreme weather events in the region have been increasing, producing significant social and economic ripple effects. Asia and the Pacific is particularly exposed to the impacts of climate change and the transition risks stemming from policies aimed at mitigation, the development of more climate-friendly technologies, and changes in consumer preferences. 

These dynamics adversely affect sovereign risk and debt sustainability through a range of transmission channels such as the direct fiscal effects of climate-related natural disasters and disruptions to financial sector stability. The economies that are the most exposed to climate change are the ones that have the greatest need for resilience investment.

Additionally, climate change will have a profound impact on long-term growth potential and will inevitably have consequences for public finances and debt sustainability. The extent to which climate change affects financial stability can also have ramifications for the cost of sovereign borrowing.

Episode 2 of the ADBI Webinar Series will examine the transmission channels of climate risks to sovereign risks and present policy solutions, including through innovative financing instruments, for mitigating climate-related sovereign risks, climate-proofing public finances, and supporting financial stability and sustainable development. 

Objectives
  • Understand the key transmission channels of climate risks to sovereign risks
  • Present policy solutions for mitigating climate-related sovereign risks and climate-proofing public finances, including solutions to promote financial stability
  • Strengthen developing countries’ capacities to design climate strategies 
Target Participants
  • Policy makers and regulators from Asian Development Bank member economies
  • Experts from international organizations, the private sector, academia, and think tanks
  • Interested members of the public
Output
  • Better understanding of the economic and financial aspects of climate change
  • Shared experiences on best practices to build economic and financial climate resilience through case studies
  • Enhanced dialogue and networking among various government institutions, regulators, and international organizations on how to climate-proof economies and public finance

Event Contact