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This study examines the relationship between climate risk and stock crash risk and the moderating effect of greenhouse gas emission trading scheme (ETS). Numerous studies have tested stock price crash risk measured by the negative skewness of return distributions in the areas of internal governance mechanism. While interest in environmental performance for sustainable growth of firms has increased, there are no studies on the effect of climate risk on stock crash risk. Thus, we find that climate risk (a firm's greenhouse gas emissions and energy consumption) increases stock crash risk, and the positive effect of climate risk on stock crash risk is weakened after introduction of the emission trading scheme. This study theoretically extends the literature on the empirical determinants of stock crash risk, and practically provides investors with proven information about whether climate risk is worth considering during investment decisions. Furthermore, at the level of government policy, we can suggest that a monitoring system is needed to mitigate potential information asymmetry problems in firm with high climate risk. [ABSTRACT FROM AUTHOR]

According to the World Bank, energy efficiency is a critical facilitator of most Sustainable Development Goals. Its contribution to CO2 emission reduction is astounding. Environmentalists have recently emphasized the essential need to determine energy efficiency causes. This research broadens the debate's horizons by proposing additional possible energy efficiency factors using data from the Chinese economy. From 1990 to 2020, we examined the influence of investment in renewable energy resources, financial inclusion, industrial production, and trade openness on China's energy efficiency and climate risk. Additionally, this study is added to the literature by examining the causal relationships between variables while considering the temporal dimension. The findings indicate that industrial production, financial inclusion, public R&D on renewable energy, and trade openness contribute significantly to China's energy efficiency and climate risk. All other factors, except industrial production, are positively associated with energy efficiency. The path of causality is established from energy efficiency and climate risk to financial inclusion, industrial production, renewable energy, public research and development budgets, and trade openness. According to the findings, changes in energy performance have frequency-changing impacts on all variables. Policymakers believe that the financial system must be strengthened since this will significantly influence renewable energy. [ABSTRACT FROM AUTHOR]

Climate risk is one of the key factors affecting the energy industry, and then affects the global energy trade. By adopting a network approach to the global energy trade and based on the data of global energy trade during 1996–2018, the evolution characteristics of the global energy trade network are hereby investigated, and the impact of climate risk on the global energy trade is explored. The results demonstrate that the global energy trade network has scale-free characteristics and significant regional characteristics and that its heterogeneity is weakening on the whole. Climate risk is negatively correlated with the energy trade relationship between countries. The simulation results show that climate risk has a greater impact on the import status of all countries than their export status and that only a few countries have large climate risk spillover effects. In addition, the climate risk spillover effects of countries are closely related to their import statuses. Overall, the present study provides policy suggestions for identifying important energy trading countries under climate risk shock and preventing the negative impact of climate risks on global energy trade. [ABSTRACT FROM AUTHOR]

The aim of this work is to introduce an innovative methodology for performing risk attribution within a multifactor risk framework. We applied this analysis to the assessment of systemic, climate, and geopolitical risks relative to a representative sample of Eurozone banks between 2011 and 2022. Comparing the results to the output of a bivariate approach, we found that contemporaneous tail crises generate combined equity losses exceeding partial analysis estimates. We then attributed the combined risk to each factor and to the effect of their interaction by employing our proposed frequency-based approach. For our computations, we used multivariate GARCH, Monte Carlo simulations, and a suite of Eurozone-specific factors. Our results show that total combined risk is on average 18% higher than traditional systemic risk estimates, that climate risk more than doubled in our period of analysis, and that geopolitical risk surged to over 5% of total combined risk. Our climate risk estimate is in line with the results of the 2022 European Central Bank climate stress test, and our geopolitical risk measure shows a positive correlation with the GPRD and Threats index. [ABSTRACT FROM AUTHOR]

Development financing focusing on climate hazards has become necessary in recent decades as a result of the rise in emissions of greenhouse gases (GHG). This study investigates how the Congo Basin's greenhouse gas emissions are affected by using renewable energy sources and climate risk-related development financing. Multiple conclusions are drawn from panel regression analysis. First, there's a slight but substantial rise in GHG emissions when climate risk-related development finance increases. Second, a boost in climate risk-related mitigation finance substantially encourages the introduction of renewable energy. Third, greater utilization of renewable energy results in a diminution in GHG emissions. Finally, greater utilization of the renewable energy minimizes the influence of the climate risk-related development finance. The research recommends creating a monitoring system to guarantee the effective use of climate funding for generating renewable energy sources, including wind, biomass, geothermal, hydropower, and solar energy. Additionally, it urges donor economies and authorities to provide emerging economies with a supplementary consistent and steady flow of financing for development mitigation connected to climate risk. [ABSTRACT FROM AUTHOR]

Climate risk is a critically important challenge for society. Current accounting-related efforts include initiatives by regulators to promulgate climate risk disclosure standards, focusing on disclosure of nonfinancial and forward-looking information. These proposals are certain to evolve over time. With management accounting research's focus on decision-making and performance evaluation using nonfinancial performance measures and effective management control systems, management accounting researchers are in a strong position to provide unique input into the ongoing development of these reporting standards. In this commentary, we discuss topics where management accounting researchers can contribute to the standard-setting efforts. Contributing to these efforts requires a change in mindset for management accounting researchers from primarily focusing on internal and potentially idiosyncratic decision-makers to a broader audience that includes external providers of capital. However, the reward to doing so is participation in interesting and important research avenues that can have a real impact on society. JEL Classifications: M49; M48; M14. [ABSTRACT FROM AUTHOR]

Climate change impacts, risks and sustainability disclosures have attracted increasing attention from scholars in various streams of the economics and finance literature towards achieving the UN's Sustainable Development Goals (SDGs). Within the stream of climate finance, the global initiatives for corporate social responsibility (CSR) and environment, social and governance (ESG) practices have had important roles in leveraging firms to become more actively involved in environment‐related disclosure, in which climate risk reporting is central to evaluating whether and to what extent a firm and its operations are friendly to the environment. Along with the growth of the UN Principles for Responsible Investing in 2005, one of the most recent global initiatives that has been formed is the Taskforce on Climate‐Related Financial Disclosures (TCFD), which has considered the climate‐related financial disclosure recommendations of G20 finance ministers. Given that TCFD recommendations have recently been released for a broad domain of players (such as banks, investors, insurers and governments) in various countries (e.g., New Zealand, the United States and Japan), we surveyed the most recent studies on the TCFD by using a conceptual framework for climate‐related disclosures focusing on studies published worldwide. On the basis of a thorough review, we highlight the essential functions of financial markets and also provide the critical implications for different market players ranging from providers to supporters of the TCFD. Our study offers a timely conceptual review of the TCFD which is critical for stimulating sustainable investments, climate finance and enhanced corporate reporting. [ABSTRACT FROM AUTHOR]

This study examines the relationship between investment inefficiency and climate risk and the moderating effects of managerial ownership on this relationship of Korean companies. Previous studies have focused on the relationship between climate risk and firm value using disclosure information related to climate risk. In contrast, we directly measure climate risk using actual greenhouse gas emissions and energy consumption data released by Korean companies. We find that the higher is the investment inefficiency, the higher is the climate risk, and the higher is the managerial ownership, the lower is the climate risk. In addition, we find that managerial ownership weakens the positive relationship between investment inefficiency and climate risk. This study suggests alternatives to reduce climate risk through efficient investment, as opposed to simple, large-scale investment in facilities, and emphasizes the role of managerial ownership in the management strategies to reduce climate risk with the goal of enhancing firm value. [ABSTRACT FROM AUTHOR]

Disaster planning for slow-onset city-wide shocks will be become increasingly necessary, particularly as cities face increasingly severe climate hazards. This paper provides unique insight into the disaster planning and management that was undertaken by the City of Cape Town government in response to its most severe hydrological drought on record. It describes how risk was understood and why decisions were made on key elements of the plan, including trigger points, risk prioritisation and mitigation, and the location and design of points of distribution of water rations for the public. Reflecting upon the authors' experience and interviews with senior City officials who worked on the drought disaster planning and response, the paper extracts five key lessons learnt that have since been applied during the COVID-19 pandemic: (i) the need for cross-functional planning and response skills, (ii) the need for integrated, up-to-date and scale-appropriate data; (iii) the importance of scenario-based simulations, communication and rapid costing to enable the rapid scaling-up of a response; (iv) the value of being able to use outsourced expert capacity effectively; and (v) the application of previously used disaster management and planning experience to build resilience in cities. These lessons, captured in a visual framework, help reflect on capabilities required for responding to future city-scale disasters. The paper provides an informative case study for other cities and risk managers, and will be particularly useful for global South contexts that face drought and other slow-onset disasters, most recently illustrated by the COVID-19 pandemic. • First public description of Cape Town's disaster planning for Day Zero. • City-scale planning for water rationing and distribution described. • Social Vulnerability Index and Economic Nodes Index developed for Cape Town. • Five key lessons learnt are combined in a framework for city-wide disaster response. • Lessons learnt from drought planning informed City's response to COVID-19. [ABSTRACT FROM AUTHOR]

This paper deals with the results of the Research Project “METROPOLIS – Integrated and sustainable methods and technologies for resilience and safety in urban systems”, funded under PONREC 2007-2013. Among all the results of the work, the paper is focused on the development of a model to measure climate vulnerability in urban areas. The application of the model provides the assessment of impacts and the subsequent planning of corrective actions to increase building and urban resilience by means of technological retrofitting. The testing of the model for heat waves and pluvial flooding has been implemented in the urban system of Naples City which has been divided into the physical subsystem and the population subsystem.

In the presence of a global pandemic (COVID-19), the relentless pressure on global decision-makers is to ensure a balancing of health (reduce mortality impacts), economic goals (income for livelihood sustenance), and environmental sustainability (stabilize GHG emissions long term). The global energy supply system is a dominant contributor to the GHG burden and deeply embedded in the economy with its current share of 85%, use of fossil fuels has remained unchanged over 3 decades. A unique approach is presented to harmonizing the goals of human safety, economic development, and climate risk, respectively, through an operational tool that provides clear guidance to decision-makers in support of policy interventions for decarbonization. Improving climate change performance as an integral part of meeting human development goals allows the achievement of a country's environmental, social, and economic well-being to be tracked and monitored. A primary contribution of this paper is to allow a transparent accounting of national performance highlighting the goals of enhancing human safety in concert with mitigation of climate risks. A measure of a country's overall performance, combined as the Development and Climate Change Performance Index (DCI), is derived from two standardized indexes, the development index H and the Climate Change Performance Index CCPI. Data are analyzed for 55 countries comprising 65 percent of the world's population. Through active management and monitoring, the proposed DCI can illustrate national performance to highlight a country's current standing, rates of improvement over time, and a historical profile of progress of nations by bringing climate risk mitigation and economic well-being into better alignment. [ABSTRACT FROM AUTHOR]

• Multivariate weather derivatives can be priced using copula-based methodologies. • Temperature-Rainfall derivatives generally show strong left-tail dependence. • Modelling uncertainties and climate change can reduce effectiveness of weather and climate hedging. • Weak weather and climate hedging may increase climate physical risk. • An increased climate physical risk may lead to concerns for financial stability The paper focuses on the role of climate and weather derivatives (CDs/WDs for short) as instruments to hedge climate risk. The aim of this paper is twofold: (i) we introduce a copula-based pricing methodology for multivariate CDs/WDs, whose flexible theoretical framework allows to be suited to any pricing application and possible structure of multivariate products, and (ii) we discuss the impact of CDs/WDs on climate risk and their implication for financial stability. Using the proposed framework, we illustrate a calibration example on a case study on Italian data. We find that Archimedean copula functions characterized by left tail dependence are generally more suitable to fit the data, depending on the season and the location. We also explore the advantages of using more sophisticated, i.e. multivariate, functions and assess the improvement of fitting. Subsequently, leveraging both the theoretical model and the empirical results, we discuss the relation between climate risk hedging and financial stability. Especially, we move from modeling complexities and limitations to illustrate how incorrect calculations (i.e. mispricings, or over/under estimations of capital at risk) can, alongside with climate change effect, increase rather than reduce the climate physical risk and hence the concerns for financial stability. Finally, we discuss this point in relation with the legislative framework, noting how, in the current context of uncertain legislation and imperfect pricing, climate hedging risks are likely to do more harm than good. [ABSTRACT FROM AUTHOR]

• We explore the role of climate risk and culture in cross-country variation in Covid-19 mortality. • The greater the climate risk, the higher the risk of Covid-19 mortality. • Preparedness for the climate emergency also helped in fighting the pandemic. • Individualistic societies fared much worse than collectivist ones in fighting Covid-19. • This paper is the first to link climate risk, culture and the Covid-19 mortality rate. Why have some countries done significantly better than others in fighting the Covid-19 pandemic? Had some countries been better prepared than others? This paper attempts to shed light on these questions by examining the role of climate risk and culture in explaining the cross-country variation in the Covid-19 mortality, while controlling for other potential drivers. In our analysis, we consider climate risk, readiness to climate change and individualism as main indicators reflecting the climate and culture status of individual countries. Using data from 110 countries, we find that the greater the climate risk; the lower the readiness to climate change and the more individualistic the society, the higher the pandemic mortality rate. We also present a series of sensitivity checks and show that our findings are robust to different specifications, alternative definitions of the mortality rate; and different estimation methods. One policy implication arising from our results is that countries that were better prepared for the climate emergency were also better placed to fight the pandemic. Overall, countries in which individuals look after each other and the environment, creating sustainable societies, are better able to cope with climate and public health emergencies. [ABSTRACT FROM AUTHOR]

Assessing risks from climate change is key for effective local adaptation planning. Integrated and participatory risk assessments are increasingly promoted as the most credible approach, ensuring community buy-in and overcoming data and resource restrictions in specific localities. Integrating the risk assessments of multiple actors can prove problematic, however, and demands attention to actors’ diverse values and politics. In this paper, I critically examine the potential for integrated risk assessments of climate change in Vanuatu, South Pacific. I focus on local communities’ risk assessments, and assessments by practitioners in civil society organizations (CSOs) that facilitate and fund local adaptation planning on climate change. I find a marked difference in how actors contextualized and prioritized risks. Villagers assessed current impacts and risks from climate change in relation to wider socio-economic changes, and prioritized maintaining their way of life. In contrast, CSO actors adopted a technocratic approach, drawing on climate science and focusing not only on the severity of risks but also on the potential need for external interventions. Explanations for climate-related changes, and notions of causality, also differed among villagers and CSO actors. These differences reveal key challenges concerning actors’ ways of knowing, conflicting values and worldviews, and the political interests influencing risk assessments. Effectively enabling integrated risk assessments will require open and inclusive dialogue among actors that creates space for alternative understandings of risk and potential adaptation strategies for climate change. [ABSTRACT FROM AUTHOR]

Developing countries share many common challenges in addressing current and future climate risks. A key barrier to managing these risks is the limited availability of accessible, reliable and relevant weather and climate information. Despite continued investments in Earth System Modelling, and the growing provision of climate services across Africa and India, there often remains a mismatch between available information and what is needed to support on-the-ground decision-making. In this paper, we outline the range of currently available information and present examples from Africa and India to demonstrate the challenges in meeting information needs in different contexts. A review of literature supplemented by interviews with experts suggests that externally provided weather and climate information has an important role in building on local knowledge to shape understanding of climate risks and guide decision-making across scales. Moreover, case studies demonstrate that successful decision-making can be achieved with currently available information. However, these successful examples predominantly use daily, weekly and seasonal climate information for decision-making over short time horizons. Despite an increasing volume of global and regional climate model simulations, there are very few clear examples of long-term climate information being used to inform decisions at sub-national scales. We argue that this is largely because the information produced and disseminated is often ill-suited to inform decision-making at the local scale, particularly for farmers, pastoralists and sub-national governments. Even decision-makers involved in long-term planning, such as national government officials, find it difficult to plan using decadal and multi-decadal climate projections because of issues around uncertainty, risk averseness and constraints in justifying funding allocations on prospective risks. Drawing on lessons learnt from recent successes and failures, a framework is proposed to help increase the utility and uptake of both current and future climate information across Africa and India. [ABSTRACT FROM AUTHOR]

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• The role of climate risk exposure in the cross-sectional pricing is examined. • We find a premium of low climate risk exposure in the Chinese stock market. • The premium remains after controlling for well-known pricing factors. • The premium of low climate risk exposure is extremely robust. This paper examines the role of climate risk exposure in the cross-sectional pricing of individual stocks in China. We find a premium of low climate risk exposure: stocks with low climate risk exposure significantly outperform those with high climate risk exposure by 0.83% to 0.90% per month in the future, on a risk-adjusted basis. Results of Fama-MacBeth regressions show that the premium of low climate risk exposure remains after controlling for well-known pricing factors. Moreover, a range of alternative settings confirms that the premium is extremely robust. Finally, climate risk exposure is a combination of pricing factors such as profitability and investment, which provides potential explanations for our results. Our study documents the importance of climate risk in cross-sectional pricing in the Chinese stock market. [ABSTRACT FROM AUTHOR]

• GARCH-MIDAS model is adopted to predict natural gas futures' volatility considering climate risks. • Climate policy uncertainty (CPU) and climate-related disasters are used to indicator climate risks. • Climate risks can improve the prediction of natural gas futures price volatility. In this paper, we examine the tracking and predictive power of two kinds of climate risks—namely, climate policy uncertainty (CPU) and climate-related disasters—on the price volatility of natural gas futures. The GARCH-MIDAS model was adopted to incorporate daily natural gas futures prices with monthly CPU indices and disaster frequencies. The empirical results showed a robust predictive relationship between disaster frequency and natural gas price volatility under both in-sample and out-of-sample scenarios, while combining the CPU index with other predictors could not improve the out-of-sample forecasting performance. We believe these findings could provide insights for traders and market regulators. [ABSTRACT FROM AUTHOR]

This paper investigates whether climate risk and climate policy uncertainty (CPU) have traditional linear or complicated non-linear impacts on insurance demand. We find evidence that both phenomena exist. Linear model shows positive effect of climate risk and negative effect of CPU on insurance demand. However, climate risk and CPU are interdependent, non-linear analysis demonstrates that CPU acts as a threshold. In particular, climate risk has a U-shaped relationship with life insurance demand and an inverse S-shaped relationship with non-life insurance demand, which provides insurance companies with a better understanding of how insurance demand fluctuates under climate risk. • We show CRI and CPU have both linear and non-linear impacts on insurance demand. • Climate risk has U-shaped bearing with life insurance demand. • Climate risk has inverse S-shaped bearing with non-life insurance demand. • Risk consciousness, self-controllability, and insurability lead to non-linearity. [ABSTRACT FROM AUTHOR]

The growth of the salmon aquaculture industry has attracted an increasing number of investors. Investors are conscious of economic consequences of climate change for the salmon farming companies, hence their demand for climate-related financial disclosure has increased. This study discusses potential climate-related financial impacts imposed on the salmon aquaculture production as identified by the Task Force on Climate-related Financial Disclosure (TCFD). We use data from 2016 to 2021 available on the Carbon Disclosure Project (CDP) platform, and we show to what extent salmon aquaculture companies disclose their climate-related risks. We find that when the demand of investors for climate-related financial disclosure increases, more firms tend to comply with their requests, while based on the CDP's evaluation system, the firms perform better in minimizing their carbon impact. We argue that when salmon aquaculture companies publish their climate-related financial disclosure, they ensure transparency for their investors and secure a smooth transition into a low carbon economy. [ABSTRACT FROM AUTHOR]

As the world struggles to limit warming to 1.5 or 2 °C below pre-industrial temperatures, research into solar climate interventions that could temporarily offset some amount of greenhouse gas-driven global warming by reflecting more sunlight back out to space has gained prominence. These solar climate intervention techniques would aim to cool the Earth by injecting aerosols (tiny liquid or solid particles suspended in the atmosphere) into the upper atmosphere or into low-altitude marine clouds. In a new development, “cooling credits” are now being marketed that claim to offset a certain amount of greenhouse gas warming with aerosol-based cooling. The science of solar climate intervention is currently too uncertain and the quantification of effects insufficient for any such claims to be credible in the near term. More fundamentally, however, the environmental impacts of greenhouse gases and aerosols are too different for such credits to be an appropriate instrument for reducing climate risk even if scientific uncertainties were narrowed and robust monitoring systems put in place. While some form of commercial mechanism for solar climate intervention implementation, in the event it is used, is likely, “cooling credits” are unlikely to be a viable climate solution, either now or in the future. [ABSTRACT FROM AUTHOR]

South Asia is the most vulnerable region in the context of global warming, climate change, and climate risk. Climate finance is the most useful tool for combating climate challenges worldwide. The study explores the present picture of climate finance in South Asian (SA) countries. The study uses multilateral development bank (MDB), Green Climate Fund (GCF), and Germanwatch supplied data from 2011 to 2021. Under the theoretical lens of institutional capacity development, the study attempts to correlate climate finance and climate risk. The study indicates an increasing trend of MBDs' and the GCF's climate finance in many countries worldwide. The study finds that MDBs' total global climate finance is USD 446,977 million, while the SA region has received USD 59,301 million since 2011. It also reports that MDBs provide 77% and 23% of the money to the mitigation and adaptation areas. Moreover, the study reports that, after COVID-19, MDBs substantially increased the amount of global climate financing, but this increase was not seen in the SA region. Our climate risk data indicate that most of the SA countries are highly long-term climate risky and lose, on average, 0.378% of GDP. The correlation matrix finds a negative and significant correlation between climate finance and long-term and yearly climate risk. The study identifies that the region's climate financing flow of money is not rationally distributed based on the short-run and long-run climate risks. The study presumes that more climate finance would be the most effective mechanism to mitigate climate risk. Therefore, SA region leadership drastically requires a holistic framework to address the prevailing climate problems and to ensure regional coordination and cooperation toward climate finance and policies. The research findings have significant implications for climate policy and climate finance. [ABSTRACT FROM AUTHOR]

Purpose: Social development is the ultimate goal of every nation, and climate change is a major stumbling block. Climate Risk Index has documented several climate change events with their devastations in terms of lives lost and economic cost. This study aims to link the climate change and renewable energy with the social progress of extreme climate affected countries. Design/methodology/approach: This research used the top 50 most climate-affected countries of the decade and estimated the impact of climate risk on social progress with moderation effects of renewable energy and technology. Several competing panel data models such as quantile regression, bootstrap quantile regression and feasible generalized least square are used to generate robust estimates. Findings: The results confirm that climate hazards obstruct socioeconomic progress, but renewable energy and technology can help to mitigate the repercussion. Moreover, improved institutions enhance the social progress of nations. Research limitations/implications: Government should improve the institutional quality that enhances their performance in terms of Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption to increase social progress. In addition, society should use renewable energy instead of fossil fuels to avoid environmental degradation and health hazards. Innovation and technology also play an important role in social progress and living standards, so there should be free hand to private business research and development, encouraging research institutes and universities to come forward for innovation and research. Practical implications: The ultimate goal of all human struggle is to have progress that facilitates human beings to uplift their living standard. One of the best measures that can tell us about a nation's progress is Social Progress Index (SPI), and one of many factors that can abruptly change it is the climate; so this study is an attempt to link the relationship among these variables and also discuss the situation where the impact of climate can be reduced. Social implications: Although social progress is an important concept of today's economics discussion, relatively few studies are using the SPI to measure social well-being. Similarly, there is consensus about the impact of climate on people, government and crops but relatively less study about its overall impact on social progress, so this study attempts to fill the gap about the relationship between social progress and climate change. Originality/value: The main contribution of this study is the solution for the impact of climate risk. Climate risk is not in human control, and we cannot eliminate it, but we can reduce the negative impacts of climate change. Moderator impact of renewable energy decreases the negative impact of climate change, so there is a need to use more renewable energy to mitigate the bad consequences of climate on social progress. Another moderator is technology; using technology will also mitigate the negative consequences of the climate, so there is a need to facilitate technological advancement. [ABSTRACT FROM AUTHOR]

Objective of the study: This study aims to understand the need for landscape assessment of the 18 non-attainment cities in the state of Maharashtra, to understand and rank the cities according to the need and necessity for strategic implementation of air quality management. This air quality management is a National Clean Air Programme initiative to curb the air pollution level in all the highly polluted Indian cities by 20–30% till 2024. Methodology: The ranking and selection of the cities consisted of a two-phase approach including (a) desk research and (b) field interventions and stakeholders' consultations. The first phase included (ai) review of 18 non-attainment cities in Maharashtra, (aii) identification of suitable indicators to inform prioritisation during the ranking process, (aiii) data collection and analysis of the indicators and (aiv) the ranking of the 18 non-attainment cities in Maharashtra. The second phase, i.e. field interventions included (bi) Mapping of stakeholders and field visits, (bii) the consultations with the stakeholders, (biii) information and data collection and (biv) ranking and selection of cities. On analysing the score obtained from both the approaches a ranking of all the cities is done accordingly. Results and discussion: The screening of cities from the first phase gave a possible list of 8 cities—Aurangabad, Kolhapur, Mumbai, Nagpur, Nashik, Navi Mumbai, Pune, Solapur. Further, the second round of analysis involving field interventions and stakeholder consultations was done within the 8 cities to find out the most suitable list of two to 5 cities. The second research analysis gave Aurangabad, Kolhapur, Mumbai, Navi Mumbai and Pune. A more granular stakeholder consultation resulted in the selection of cities like Navi Mumbai and Pune as the cities where implementation of new strategies seemed feasible. Intervention and activities: New strategic interventions like (a) strengthen the clean air ecosystem/institutions, (b) air quality monitoring and health impact assessment, and (c) skill development to ensure the long-term sustainability of initiatives planned for the cities. [ABSTRACT FROM AUTHOR]

The influence of anthropogenic climate change on the frequency and intensity of extreme weather events is becoming increasingly well understood. Extreme event attribution studies now exist for hundreds of events over the past few decades. However, there remain large heterogeneities in the number of attribution studies across the world and for different hazards, as well as limited capacity to conduct new studies. In this study, we suggest that there is more information to draw from past attribution studies about recent events. This is because, even though anthropogenic forcing continues to increase, many new events share meteorological characteristics with previously attributed ones. Here, we explore the possibility of using related studies and other lines of existing evidence such as projections and trend analysis to create rapid, low-resource attribution statements. To do this, we discuss the potential use cases for attribution results, including raising awareness of climate risks, preparing adaptation measures and attributing climate loss and damage. Then we discuss the considerations necessary to fulfil these uses in three cases studies, including a heatwave in the UK, a tropical storm in the Caribbean and a drought in East Africa. To conclude, we highlight the regions and hazards for which information can be drawn without new quantitative analysis, and those in which it remains urgent. This could aid prioritisation of limited resources for research into less well understood regions and hazards. [ABSTRACT FROM AUTHOR]

Global climate change represents a grand challenge for society, one that is increasingly influencing tourism sector investment, planning, operations, and demand. The paper provides an overview of the core challenges climate change poses to sustainable tourism, key knowledge gaps, and the state of preparedness in the tourism sector. As we begin what is widely considered a decisive climate decade, low sectoral preparedness should be highly disconcerting for the tourism community. Put bluntly, what we have done for the past 30 years has not prepared the sector for the next 30 years of accelerating climate change impacts and the transformation to a decarbonized global economy. The transition from two decades of awareness raising and ambition setting to a decade of determined collective response has massive knowledge requirements and necessitates broad sectoral commitments to: (1) improved communications and knowledge mobilization, (2) increased research capacity and interdisciplinary collaboration, and (3) strategic policy and planning engagement. We in the tourism and sustainability communities must answer this clarion call to shape the future of tourism in a decarbonized and post +3 °C world, for there can be no sustainable tourism if we fail on climate change. [ABSTRACT FROM AUTHOR]

In the present paper, the temporal variability and the linear trend of the annual and monthly minimum air temperature, the variability of the decennial minimum air temperature, as well as the variation during the year of the multiannual monthly minimum temperature were analyzed. For this purpose, the meteorological data on the monthly minimum air temperature, but also the monthly average temperature were used, from the Deva weather station. The analyzed period was 1961-2021 (61 years). The result was that the absolute minimum air temperature was -31.6°C in Deva and was recorded on January 24, 1963. The linear trend of the annual minimum temperatures was upward. The 1st decade had the lowest decennial minimum temperature. Over the 6 studied decades, it is generally observed an increase in decennial minimum temperatures from the 1st decade (1961-1970) to the 4th decade (1991-2000) and a slight decrease in them towards the last two decades (2001- 2020). The decennial minimum temperature increased from the 1st decade to the 4th decade by 11.2°C, and from the 1st decade to the 6th decade by 9.3°C. The global warming of the Earth's atmosphere is also felt at the Deva station, where at 11 of the 12 months of the year there is an upward trend of monthly minimum temperatures, during 1961-2021. The most pronounced increase in monthly minimum temperatures has occurred, in recent years, in the June-September interval and in January. So, the nights of summer, beginning of autumn and middle of winter have become warmer and warmer, in recent years.

• Conduct critical analysis on climate adaptation study in transportation. • Introduce a new classification method with reference to diverse key topics. • Identify the research gaps through statistical and qualitative analysis. • Guide future research directions in transport adaptation to climate change. With the occurrence of more frequent and intense climate change events, transportation systems, including their infrastructure and operations become increasingly vulnerable. However, the existing research related to climate risks, adaptation and planning in the transport sector is still at an embryonic stage. Understanding such, this paper presents a critical review on climate risks, adaptation strategies and planning in the context of road and rail transportation systems. It aims to conduct a rigorous survey, to highlight any significant research gaps not addressed in past studies and to analyse current emerging topics to guide future directions. It critically dissects the selected papers by categorising them into several dimensions to reveal the status quo and potential challenges, including climate risk assessment, transport asset management, climate planning and policy, and adaptation of transport infrastructure to climate change. It will provide valuable references for future research and constructive insights and empirical guidance on climate adaptation, risk analysis, transport planning and other important relevant topics. [ABSTRACT FROM AUTHOR]

In the context of the rapid changes that have occurred in recent years, characterized by veritable 'black swans' such as the COVID-19 pandemic and extreme weather events that are occurring with increasing frequency, the issue of climate change has come into the focus of banking regulators and supervisors. Therefore banking institutions, if they are subject to the Single Supervisory Mechanism, have been called upon to develop (and, subsequently, to integrate into their business practices) methodologies for the identification, quantification and management of such risks, mainly under the profiles of: • Transition Risk, associated with policies undertaken by governments to foster climate change mitigation and adaptation; • Physical Risk, associated with the occurrence of extreme climatic events and its impact on the bank's assets. This paper analyzes one of the most significant hazards within the Physical Risk domain, which is Flood Risk. The measurement is focused on the prospective evolution of the flood events on a portfolio of mortgages secured by residential properties. The impact of this risk driver is subsequently reflected through the movement of appropriate transmission mechanisms on the LGD and PD parameters relating to the exposures in the scope. Finally, the effect on loan adjustments is provided, by recalculating the expected losses that result from the stressed projections. The flood risk projection is executed on a long-term timeframe, developing over 3 climate scenarios up to 2050. The choice of this hazard is due to its relevance in terms of frequency of events and harmfulness, a relevance that is confirmed by its inclusion in both the top-down climate stress testing exercises carried out by the ECB and in the bottom-up climate stress testing exercise promoted by the ECB itself in 2022 and carried out by the SSM Banks. A comprehensive simulation framework, structured as follows, is then presented: • a macro-climate scenario simulation engine; • the downscaling of these scenarios to obtain localized climate effects on individual properties; • the transmission of these effects into a depreciation formula for the individual property; • the LGD stress associated with the devaluation of the collateral property, and the PD stress that goes along with it, obtained by correlation.

Floods are among the costliest natural disasters worldwide. Integrated flood risk management approaches involving both public and private measures have been proposed to cope with trends in flood risk. These approaches are hampered by a lack of information about the cost-effectiveness of private flood damage mitigation measures. This study examines the economic desirability of flood-proofing different types of commercial buildings in Umbria, which is a flood-prone region in Europe. A cost-benefit analysis (CBA) is applied, which uses empirical information on flood damages to a variety of commercial activities. The CBA accounts for a diversity of uncertainties, including those of flood damage statistics and related flood-proofing benefits derived from bootstrap methods. Results show that, on average, dry flood-proofing is economically attractive for certain categories of commercial buildings. The flood probability and uncertainty of damage are key factors driving CBA results. Implications of our findings for policymakers and insurers are discussed. [ABSTRACT FROM AUTHOR]

The academic literature on green energy equity markets has increased extensively over the last decade due to growing concerns about climate change and the substantial flow of investments into alternative energy markets. This study contributes by investigating the effect of climate risk on the return and volatility of green energy assets. This is one of the first papers to assess such effects using the recently developed climate policy uncertainty index as an indicator of climate risk. In particular, we seek to answer the following research questions. Firstly, does rising climate risk lead to a significant increase in green energy asset returns? Secondly, does climate risk affect the volatility of green energy assets negatively? Employing various models, we provide statistical evidence in favour of our hypotheses. Rising climate risk seems to encourage investment in alternative energy, which leads to an upward demand for green energy, which in turn increases the prices of green energy investments and decreases their volatility levels. Our analysis further shows that when climate risk increases, the correlation between crude oil and green energy returns decreases. Furthermore, green energy assets are more effective than gold for hedging oil market risk, without ignoring the hedging ability of technology stock investment. • Study the effect of climate risk on the return and volatility of green energy assets. • Rising climate risk increases the prices of green energy and decreases their volatility levels. • When climate risk increases, the correlation between oil and green energy returns decreases. • Green assets are more effective than gold for hedging the oil market risk. • The hedging ability of technology stock investment should not be ignored. [ABSTRACT FROM AUTHOR]

The paper argues that policies towards upland communities in Vietnam tend to reinforce land use strategies that increase vulnerability to climate-related risk and undermine adaptive capacity of upland communities. It is argued that the division of land use between intensive agriculture/tree plantation and protected forest is increasing both livelihood- and environmental risk. Qualitative interviews and group discussion with upland villagers and local government staff in two districts of north and central Vietnam suggest that farmers are facing frequent loss and damage due to floods, storms and drought. Changing production patterns, together with the increase in climate-related hazards and stresses, is changing the character of vulnerability of upland communities. The study primarily explores village-level perspectives regarding impacts of hazards and stresses, ideas of how to reduce risk, along with how related policies and institutions influence local possibilities of risk reduction and adaptation. Our fieldwork results suggest that many villagers and local leaders see adaptation and risk reduction in terms of improved irrigation and in terms of access to land and forests for their livelihoods. The findings support arguments for more integration of agriculture and forestry land use, allowing for more flexibility in the development of upland livelihoods, with the aim of facilitating adaptation to climate change. [ABSTRACT FROM AUTHOR]

We provide a comprehensive cross-country analysis on the impact of national incapacity to cope with natural hazards (i.e., social shocks, political stability, health care, infrastructure, and material security needed to reduce the harmful effects of natural disasters) on financial development. The panel quantile regression analyses on a global sample of 130 countries generally confirm that the financial development of countries with lower capacity to cope is indeed significantly hampered compared to their peers, especially in countries with low financial development levels. Seemingly unrelated regression (SUR) analyses, which acknowledge the dynamic co-existence between both financial institutions and financial market sectors in a given economy simultaneously, offer notable finer details. For example, the handicapping effect on both sectors tends to apply to only countries with higher climate risks. Lack of coping capacity also exert negative effects on the development of financial institutions in countries of all levels of income but only affect financial markets of high-income group. The more detailed look into different dimensions (financial efficiency, financial access, and financial depth) of financial development is also given in our study. Overall, our findings highlight the vital and complex role of "coping capacity" aspect of climate risk on the sustainable development of financial sectors. [ABSTRACT FROM AUTHOR]

The effects of climate change carry substantial financial consequences. Despite this, physical climate risk has only sparsely been covered in previous research, particularly in the setting of investing. Investors' tools for managing physical risk are in general rudimentary and many rely on sustainability labels. This study compares physical climate risk exposure of three groups of equity funds labelled as sustainable with the general market. Physical climate risk was evaluated by quantitative modelling, incorporating first level of upstream supply chain. The results show a lower physical risk for all three groups of sustainable funds in a five- and ten-year horizon. It cannot be concluded whether the lower risk is a result of consideration in sustainability labelling, or if lower physical risk is correlated with other sustainability qualities. Further research on physical climate risk for investors is needed, not least from a quantitative perspective and on risks related to supply chain. [ABSTRACT FROM AUTHOR]

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The study tests the dynamic nexus between climate risk, natural resource exploration strategy in BRICS economies, and climate change mitigation. The study further extended the research aim and presented the recommendations for greening the globe by suggesting green recovery. Climate change protection and climate risk reduction may be efficiently funded using climate risks and natural resources. Still, it is vital to look at the carbon risk in BRICS countries as an example. The researchers used the GMM analysis technique to infer the study findings. According to the study's findings, environmental mitigation was significant at 17%, and financial strength and carbon risks were significant at 22.0%. In addition, the 20.5% association between climate risks and environmental drift in the BRICS nations highlights climate change concerns. A state's financial strength is essential to execute green economic recovery strategies, one of the most highly regarded measures to reducing climate change and guaranteeing long-term economic status at the national level. As a result of the study on green economic growth, decision-makers are provided with specific policy recommendations. [ABSTRACT FROM AUTHOR]

Using a fossil fuel extraction model that treats the atmosphere as a depletable resource, we study the optimal price of carbon in the presence of endogenous uncertainty around a climatic regime shift. We find that the optimal carbon tax should account an uncertainty‐adjusted cost term associated with the environment's scarcity. This term is shown to be sensitive to the natural sequestration rate of the atmosphere and to the probability surrounding a climate tail event. Our analysis also shows that in the presence of uncertainty, the shadow price of the environment should grow at a faster rate. Lastly, compared to the endogenous uncertainty case, we find that if the probability surrounding a regime shift is exogenously given, this shadow price should even grow at a higher rate. Considerations for Management: Based on our theoretical analysis, considerations for resource management may include: •Beside direct damages, optimal carbon pricing should account for a cost term related to the environment's scarcity.•As the probability of facing an extreme climate event increase, this cost term amplifies.•The cost term disappears for a sufficiently high abatement effort.•Compared to endogenous uncertainty, exogenous uncertainty enforces placing a higher value on the environment's shadow price. [ABSTRACT FROM AUTHOR]

Climate vulnerability research is enhanced by stakeholder engagement as coastal communities are increasingly vulnerable to climate-driven impacts, yet these impacts are rarely evenly distributed across space and stakeholder feedback is not always well incorporated into the process. While often used in applied management applications, integrated spatially explicit assessments of multi-faceted vulnerability and hazard less commonly appear in the scientific literature, especially those that are transferable across geographies and risk metrics. Since many geographies lack an integrated, stakeholder-driven assessment of multiple hazards and vulnerabilities within the same assessment, scientists with the National Oceanic and Atmospheric Administration's National Centers for Coastal Ocean Science developed a transferable and integrated community vulnerability assessment framework (Framework) that relies primarily upon available secondary data and is supplemented with stakeholder-derived primary data. Using blended approaches in stakeholder engagement, we present the Framework's six methodological steps as recently applied in Los Angeles County, California: iterative partner engagement, indicator and index development, vulnerability assessment, hazard assessment, risk assessment, and reengagement for adaptation action. We conclude that boundary-spanning organizations such as Sea Grant Extension programs can play a crucial role in participatory science and stakeholder needs assessments, and emphasize the need for continued stakeholder engagement in climate science. [ABSTRACT FROM AUTHOR]

The case study presented in this paper was conducted to study the politics of local-level climate risk management and discuss these politics' implications for responses to climate change and democratic deliberation. Local government plays an important role in the response to climate change, in particular with reference to coping with unwanted consequences of climate change, such as more frequent and intense extreme weather events, including torrential rain and flooding. Climate risk management is an approach that local government can adopt to deal with these unwanted consequences. To investigate the politics of local-level climate risk management, we conducted a case study of the municipality of Stavanger in Norway. In analyzing this case study, we drew on literature on the securitization of climate change, in particular, that of risk-based securitization of climate change produced by governmental power. The analysis given here is derived by applying the concept of risk logic understood as the translation of unwanted consequences of climate change into climate risk together with the actions and use of tools influenced by the discipline of risk analysis thereby entailed. Risk logic manifests in political discourse, actors, and tools. In this case study, the justification for risk logic on unwanted consequences of climate change at the local level comes from national-level laws and regulations. Moreover, climate risk management is translated into existing bureaucratic routines, organizational structures, and the activities of professionals. Risk tools play an essential role in making unwanted consequences of climate change governable and can manifest as a consequence of risk logic or can convey risk logic. The analysis implies that the securitization of climate change based on governmental power at the local level has a depoliticizing effect on the issue. Moreover, the unique characteristics of unwanted consequences of climate change fade as climate risk is seen as a risk driver to be factored into existing and well-known risks, and thereby normalizes the situation. Finally, the focus on the cause of climate change seems to diminish because safety is a function of the referent objects, and the response thereby becomes decoupled from the wider issue of global warming.

Chinese heavy-polluting companies have been facing enormous challenges in responding to climate risk and energy transformation. This paper uses panel regression model and investigates the impact of climate risk on corporate green innovation in Chinese heavy-polluting listed companies from 2011 to 2020. The empirical results show that climate risk adversely affects green innovation in heavy-polluting companies, and this effect persists throughout a series of robustness and endogeneity tests. Climate risk may affect corporate green innovation through decreasing R&D investment, lowing resource allocation efficiency and increasing company risk. Climate risk has a greater negative impact on mid-western, state-owned and large-size heavy-polluting companies, but can be mitigated by the development of green finance, digital finance and marketization. These findings may help heavy-polluting companies fully utilize existing resources, policies, and channels for green innovation and mitigate climate risks.

During 17–22 July 2021 a rainfall event in Henan Province of China has delivered over 820 mm precipitation around Zhengzhou with hourly intensity exceeded 201 mm. This paper presents a systematic case study of its driving processes, predictability, and future climate risks. The key aspects of this event are 1) geographically stationary and 2) temporally persistent. A sustained low-level moist easterly jetstream resulting from between typhoon In-Fa and a northward displaced subtropical high and orography in the region appear to have played a major role in the event. The event was, overall, well predicted in global operational 5-day weather forecast, though the details may not be very accurate. From a climate perspective, the large-scale low-level circulation pattern was like the August 1975 catastrophic floods in the same region, but opposite to the 2020 summer anomalous extreme Meiyu situation. Both weather patterns were rare during the past 47 years, together accounting for less than 10% of low-level daily weather patterns. The orographic features around Henan make it vulnerable for floods. A risk assessment based two sets of ensemble climate model simulations suggest the probability of such events occurring in the future will increase under the IPCC RCP8.5 scenario.

Amid increasing concerns about the impact of climate change on financial asset pricing, this paper investigates how drought risk affects stock returns in the U.S. energy sector over a thirty-year period (1990–2019). To this end, we ranked energy companies based on the long-term trend of the Palmer drought severity index (PDSI) to compare stock performance between groups experiencing the most significant increases and decreases in drought risk. Our analysis indicates that firms located in drought-prone regions have lower stock returns than those in regions with decreasing drought risk, particularly since 2010. This finding is noteworthy, as the average PDSI trend gap between regions at high risk of drought and those at low risk has widened during this period. We further divide our sample of energy companies into two subsectors-fuel production and electric utility-and find that the stock prices of both subsectors have been negatively affected by drought risk since 2010. The study underscores the energy sector’s dependency on water availability, suggesting novel implications for policymakers and investors in assessing the financial impacts of drought risks in their climate-related decision-making.