Policy Report Launch: Climate Change and Sovereign Risk

Event | 12 October 2020
Online

Time of event

09:00–11:00 Washington, DC time
22:00–00:00 Japan time

Summary

Held in conjunction with the International Monetary Fund/World Bank Group 2020 Annual Meetings, this virtual event highlighted the key findings of a new policy report by SOAS University of London, ADBI, the World Wildlife Fund for Nature (WWF), and 427 on the impacts of climate-related physical and transition risks on sovereign credit risk and debt sustainability, as well as the public policy and financial governance implications.

The discussion focused on the channels through which climate-related risks can affect sovereign risk and the importance of their respective impacts. It also examined the implications for the management of public finances, the challenges facing financial supervisors and central banks, and how international financial institutions can support countries in mitigating related risks and fostering resilience.

Objectives
  • Present the main findings of the new policy report “Climate Change and Sovereign Risk”
  • Describe the channels through which climate change risk vulnerability affects sovereign borrowing costs
  • Provide concrete recommendations for policy makers on mitigating and managing climate-related sovereign risk
Participants
  • Central bankers, financial supervisors, and other policy makers, as well as experts from think tanks, universities, and other institutions
Output
  • Distribution of the link to download the policy report “Climate Change and Sovereign Risk”
  • Enhanced understanding of the impact of climate change on sovereign risk
  • Greater impetus for policy action at the national and global levels
Partners
  • SOAS University of London
  • WWF
  • 427