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Taking China's provincial panel data from 2010 to 2020 as an example, this paper verifies that climate change, especially extreme climate change, can destabilize China's financial stability and explores the transmission path of climate risks with meteorological disaster losses as the channel variable. Our empirical results demonstrate that: (a) only after the extreme climate change breaks through a certain threshold, thus causing a significant impact on the financial system; (b) we cannot ignore the improvement of disaster prevention and reduction ability brought by the improvement of social and economic development level; (c) the impact of extreme climate change will spread to the financial system through the economic losses caused by meteorological disasters; (d) there is obvious regional heterogeneity in the spread of meteorological disaster losses to the financial system. Our results are robust to a wider battery of checks and have important policy implications. • This paper empirically tests the impact of climate change on financial stability. • Extreme climate change will damage China's financial stability. • The economic losses caused by climate disasters will spread to the finance. • The transmission of such losses has obvious regional heterogeneity. • This paper provides policy implication for coping with climate risks. [ABSTRACT FROM AUTHOR]

China is currently facing a critical challenge in completing its second radical energy transition from fossil to zero-carbon energy amidst the impacts of climate change and the international landscape. In order to clarify the concept of energy transition and the challenges facing China's energy transition, this paper adopts a research framework with Multi-Level Perspective to sort out China's energy history. Drawing on China's energy transition experience, this paper derives four key conclusions. Firstly, the energy transition is a comprehensive transformation of the energy system, which is influenced by the macro landscape, socio-technical regime and innovation niche. Secondly, based on the intensity of the transition, the historical energy transitions can be divided into two categories: incremental energy transitions and radical energy transitions. Thirdly, China's past energy transitions are mainly incremental energy transitions. Influenced by the macro environment and socio-technical regime, the transition process is mostly iterative and tortuous. Fourthly, China's energy transition is facing significant challenges in the current stage, with a tight schedule and heavy tasks, and a lack of basic scientific and technological theories and niche innovations. Building on these findings, specific recommendations to policy makers are provided. • The energy transition is a comprehensive transformation of the energy system. • China's past energy transitions are mainly incremental energy transitions. • China's energy transition faces great difficulties at this stage. • China must champion robust institutional reforms and expedite niche innovations. [ABSTRACT FROM AUTHOR]

This paper matched the data for all non-financial listed firms in China from 1990 to 2017 with weather data and used temperature and precipitation to represent climate change. Using daily temperature and daily precipitation data, we constructed temperature bins and precipitation bins. This study presents a potential first empirical analysis that applies the risk perception theory to comprehensively examine the impacts of daily temperature and daily precipitation on firms' debt financing costs. Compared to a day with a suitable temperature, a day with temperatures above 30 °C increases firms' debt financing costs by 0.2411%. Compared to a sunny day, a day with torrential rain increases firms' financing costs by 0.2697%. Approximately $122.13 million and $20.49 million in extra costs were incurred across all firms in 2017. We conducted a series of heterogeneity tests. We found that the negative impacts of climate change on debt financing costs are greater for firms that investor considers more vulnerable. Finally, we found two possible mechanisms. First, from the firm's subjective initiative perspective, firms that respond proactively during seasons of high temperatures and heavy rains can reduce the negative impacts. Second, adverse weather caused by climate change may also increase firms' debt financing costs by blocking travel. These results enrich the literature on firms' debt financing costs and contribute to the understanding of climate change's impact on firms. [Display omitted] • An extra high-temperature day increases firms' debt financing cost by 0.2411%. • An extra heavy-rain day increases firms' debt financing costs by 0.2697%. • The negative impacts will be greater for those firms that investor considers more vulnerable. • Firms' response proactively can reduce the negative impacts. • Climate change also may increase firms' debt financing costs by blocking travel. [ABSTRACT FROM AUTHOR]