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The quantitative analysis of the economic impact of climate risk is an effective means of understanding and taking reasonable preventative steps in relation to the climate-related economic crisis. This paper takes panel data from China's 31 provinces for 2009 to 2021, combined with a regulating intermediary effect model, to determine the climate risk faced in China and its influence mechanism on high-quality economic development, in an attempt to determine how to adjust the path. The results show that, first, when using a different regression model, we see that climate risks pose a significantly inhibiting effect on high-quality economic development in China. Secondly, when the climate risk increases by 1%, high-quality economic development drops by 0.0115%. When the climate risk increases by 1%, this leads to a 14.9672% increase in the likelihood of natural disasters, causing high-quality economic development to be indirectly reduced by 0.1300%. Thirdly, green innovation has a multidimensional effect; it can both directly and indirectly impact the negative effects of inhibition, and indirect adjustment has a greater effect than direct adjustment. Such regulation has a greater effect on the input than on the output. Therefore, we should seek to more accurately understand the dangers of climate risk, effectively improve the five aspects of development, and strengthen the input of green innovation and thus the output of high-quality economic development in China. [ABSTRACT FROM AUTHOR]

There is increasing pressure on organisations and countries to manage the financial risks associated with climate change. This paper summarises research on climate change, credit risk and the associated losses, and specifically identifies methods that could contribute to quantifying the causal relationships between climate change and credit risk. We conducted a bibliometric analysis using the Web of Science database to analyse 3138 documents that investigated climate change and credit risk. The key results reveal that climate change has a quantifiable effect on credit risk, and that the most affected industries or sectors are energy, transportation/mobility, agriculture and food, manufacturing, and construction. The prominent methods to quantify causal relationships between climate change and credit risk are regression models, but these are mostly used in preliminary and testing stages. Distance to default and credit risk are the main areas of focus when quantifying climate change and credit risk. Banks are the main type of organisation that have sought to quantify the causal relationship. We identify a research agenda to quantify these causal relationships. [ABSTRACT FROM AUTHOR]

This paper examines the integration of climate risks into structural credit risk models. We focus on applications in housing finance and argue that mortgage defaults due to climate disasters have different statistical features than default due to household-specific reasons. We propose two models incorporating climate risk based on two separate default definitions. The first focuses on default as a response to a decrease in home value, and the second defines default as a consequence of missed mortgage payments. Using mortgage performance data during Hurricane Harvey, we conduct an empirical study whose results suggest that climate events are potentially another source of undiversifiable credit risk affecting homeowners' ability to make contractual monthly payments. We also show that incorporating this climate-specific default process may capture additional uncertainty in default probability assessments. [ABSTRACT FROM AUTHOR]

This paper explores the strategies and practices of capturing climate risk premia for venture capital (VC) fund managers and entrepreneurs in the private cleantech sector. It also examines the impact of the feed-in tariffs (FITs) policy on the management of cleantech investments. It is shown that a longer investment period, less investment capital in cleantech investment management strategies, and optimistic climate risk management practices will help investors to better capture climate risk premia. In fact, the FITs policy will give rise to VC fund managers and entrepreneurs having a positive view regarding the prospects of the cleantech sector, motivating them to make long-term investments. Furthermore, it is shown that the greater the impact of the FITs policy, the greater the climate risk premia to be captured. In addition, the captured climate risk premia are greater in weaker economic conditions and in times of increased uncertainty with regard to product demand. [ABSTRACT FROM AUTHOR]

In this paper, we test the impact of weather-related disasters on the individual firm's equity financing cost based on Chinese listed companies in the mining industry. We collect data from the China Meteorological Disaster Yearbook and CSMAR database. Using direct economic loss associated with extreme weather-related events to quantitate meteorological disasters and regression analysis, we find that weather-related disasters significantly increase a firm's equity financing cost. This result is robust compared to alternative measurements of equity financing cost, such as the two-way fixed effect model, severe disaster dummy variable, and instrumental variable regression. Further research shows that cash holdings and managerial ability can mitigate the impact of meteorological disasters on the equity financing cost. Our study provides significant implications for firms and policymakers. Firms and policymakers should carefully evaluate the risk of weather-related disasters. [ABSTRACT FROM AUTHOR]

The ability of farmers to acquire inputs through purchase from available markets empowers them with the autonomy and capacity to diversify inputs, consequently enhancing the resilience of their cropping activities to various shocks. This paper investigates whether climate shocks, particularly rainfall shocks, influence commercial input purchase decisions by smallholder farmers in contrasting geographic regions in Malawi, with a particular emphasis on fertilizer, agrochemicals, seed, and labor. The empirical approach integrates historical weather information, climate shock perceptions with a longitudinal household survey data set to model commercial input purchasing decisions using appropriate latent variable models. The findings suggest that exposure to recent rainfall shocks, especially droughts, stimulates commercial input purchasing across regions, especially in drier central and southern regions of Malawi. This result holds true for general input purchase decisions and for specific inputs such as agrochemicals, fertilizer, seed, and labor. Although drought shocks considerably increase the probability of acquiring inputs through purchase, they occasionally diminish the intensity of purchases. Both objective and subjective measures of lagged rainfall shocks are revealed as significant determinants of commercial input purchases across regions in Malawi. In addition to regional heterogeneity findings, further analysis shows that the relatively wealthier, male-headed families and those with access to information are more likely to invest in purchased inputs in response to drought shocks. Scaling up policies that remove demand- and supply-side barriers to smallholder farmers' access to commercial inputs from available markets is necessary for adaptation to rainfall shocks. [ABSTRACT FROM AUTHOR]

The aim of the paper is to identify groups of banks with similar environmental commitment, taking into account their direct environmental impact. The study, which employs the aggregation method, reveals that small banks with a relatively worse financial standing are characterised by the lowest level of disclosures within pro-ecological initiatives. At the same time, large international banks belong to clusters defined by the highest or the lowest disclosure rates. The above-mentioned phenomenon results from the dichotomy of integrating environmental policy into their strategies and business models. This study is the first comparative analysis of the extent to which all listed (and at the same time the biggest) banks operating in Poland have taken initiatives to reduce the negative environmental impact of their activities. [ABSTRACT FROM AUTHOR]

Following a copious and famous snowfall in Madrid city (Spain) and its surrounding area, the tree masses were analysed to assess the impact of this snowfall. In this way, this paper proposes an approach towards urban forest impact inventory mapping as a consequence of the snowfall of January 2021, and the subsequent atmospheric stability, which kept surface temperatures in Madrid close to −10 °C. The study has been carried out using snowfall data from 1920 to 2020 and images from the Sentinel, Landsat and MODIS satellites. The results obtained by means of image changes in the NDVI reveal a clear impact on the trees, with 11% of the winter vegetation cover of the municipality being affected. Especially significant has been the damage detected both in the forest areas in the city and in the parks, gardens or urban roads. [ABSTRACT FROM AUTHOR]

This research presents a new model for analyzing the effects of government policies on climatic disasters on financial markets. Using Fama–MacBeth rolling regressions and the construction of model-proposed risk factors, three major risk factors are found to be significant in explaining stock returns. First, there is the risk of climate disasters. Second, there is the risk of uncertainty regarding government actions. Third, there is the risk of government response to climatic disasters. Through the increase in the cost of capital from climate disasters and the uncertainty of government response, the future cost of capital is higher, leading to less investment and lower productivity. However, the government's actions to compensate for losses due to climate damage help offset the damages from disasters. This implies that the previous estimates of economic damages due to climate risk have been underestimated. This work adds to the literature by providing a fuller estimate of the economic implications of climate change. [ABSTRACT FROM AUTHOR]

Scenario analysis is a comprehensive approach to assess the impact of climate-related transition risk on businesses. Environmental, social, and governance (ESG) scores are popular tools with financial institutions (FI's) for green-scoring practices and since they characterise a company's performance from an ESG perspective, they have been criticised for enabling "greenwashing" when used within the context of climate risk. Commercially available ESG scores are also available for listed entities, while FI counterparties are often unlisted. This study develops a methodology for creating in-house environmental scores (E-scores), which are then used to effectively choose appropriate transition pathways to be used in company-specific forward-looking scenario analysis. Such scenario analysis can be used to forecast the company's financial position, including the cost of its greenhouse gas (GHG) emissions, and quantify the impact of transition climate risk on specified metrics. The choice of metrics depends on what the results of the analysis are used for. Two metrics are identified for being useful for risk management and credit decisions: future profitability and weighted average carbon intensity. Finally, the study demonstrates how this process can be implemented with a practical worked example, using only publicly available data. [ABSTRACT FROM AUTHOR]

Cities worldwide are facing varying degrees of ongoing threats closely tied to climate change. Research is emerging that addresses climate risks as a pressing issue, especially for vulnerable cities in the Global South; however, there is a significant lack of systematic and application-oriented research on ecosystem-based adaptation to urban climate change. This study uses Shenyang in Northeast China as a case study, employing multisource data and integrated methods to examine and depict the dynamics of urban ecosystem-based adaptation to climate change amid rapid urbanization. The results indicate a decline in capacity for climate change adaptation during the study period. A framework for mainstreaming ecosystem-based adaptation is proposed, identifying specific strategies for climate change mitigation and adaptation in urban policy and planning processes in Shenyang. It also has significance for other cities to draw lessons from. By linking urban ecosystem dynamics, the capacity for urban climate adaptation, and sustainable urban governance, this study bridges the gap between research and practice in urban climate change adaptation, and expands the contribution of geography-based interdisciplinary integration to urban resilience. More practically, it provides references for Shenyang in adapting to climate change and transitioning to sustainable development. [ABSTRACT FROM AUTHOR]

Climate change is already having a negative impact on many areas of human activity, affecting life globally. It is more urgent than ever to increase our adaptive capacity to respond to current and future climate change risks. Climate services refer to a specialized sector that encompasses both research and operational activities. This sector is primarily focused on interpreting and communicating knowledge and information about climate risks in a manner that is tailored to meet the specific needs of diverse user communities. Climate services offer a range of specialized outputs, including forecasts, assessments, and advisories, which enable users to make decisions that are based on an understanding of the potential impacts of climate change. The outputs of climate services are designed to help diverse user communities effectively manage risks and capitalize on opportunities arising from climate variability and change. An attempt is made to outline the fundamental elements of climate services and point out their contribution to various aspects of human activity, focusing on their essential role in the adaptability of the priority for action agricultural sector, which appears as considerably vulnerable to the change of considerably susceptible to climate conditions. This article is structured to answer basic questions about climate services in general and to show the specificities of climate services in the agricultural sector. [ABSTRACT FROM AUTHOR]

In 2012, the Intergovernmental Panel on Climate Change (IPCC) moved from a vulnerability to a risk-based conception of climate change adaptation. However, there are few examples of work that translates this approach into climate change adaptation practice, in order to demonstrate the practical utility of following a risk-based approach to adapting to climate change. The paper explores critically the differing conceptions of vulnerability and risk across the literature relating to disaster risk management and climate change adaptation. The paper also examines a selection of spatially focused climate change vulnerability and risk assessment methodologies in this context. In doing so, we identify issues with the availability of spatial data to enable spatial risk-based climate change assessments. We argue that the concept of risk is potentially favorable in helping cities to understand the challenges posed by climate change, identify adaptation options, and build resilience to the changing climate. However, we suggest that change is needed in the way that practitioners and policymakers engage with risk-based concepts if they are to be embed into climate change adaptation activities. [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]

The objective of this paper is to model and study the impact of high temperature on mortality in Pakistan. For this purpose, we have used mortality and climate data consisting of maximum temperature, variation in monthly temperature, average rainfall, humidity, dewpoint, as well as average air pressure in the country over the period from 2000 to 2019. We have used the Generalized Linear Model with Quasi-Poisson link function to model the number of deaths in the country and to assess the impact of maximum temperature on mortality. We have found that the maximum temperature in the country has a significant impact on mortality. The number of deaths in Pakistan increases as the maximum temperature increases. We found that, as the maximum temperature increase beyond 30 °C, mortality increases significantly. Our results indicate that mortality increases by 27% when the maximum temperature in the country increases from medium category to a very high level. Similarly, the number of deaths in the country increases by 11% when the temperature increases from medium temperature to high level. Furthermore, our study found that when the maximum temperature in the country decreases from a medium level to a low level, the number of deaths in the country decreases by 23%. This study does not consider the impact of other factors on mortality, such as age, medical conditions, gender, geographical location, as well as variability of temperature across the country. [ABSTRACT FROM AUTHOR]

In 1972, The Limits to Growth, using the World3 System Dynamics model, modeled for the first time the long-term risk of food security, which would emerge from the complex relation between capital and population growth within the limits of the planet. In this paper, we present a novel system dynamics model to explore the short-term dynamics of the food and energy system within the wider global economic framework. By merging structures of the World3, Money, and Macroeconomy Dynamics (MMD) and the Energy Transition and the Economy (ETE) models, we present a closed system global economy model, where growth is driven by population growth and government debt. The agricultural sector is a general disequilibrium productive sector grounded on World3, where capital investment and land development decisions are made to meet population food need, thus generating cascade demands for the energy and capital sector. Energy and Capital Sectors employ a more standard economic approach in line with MMD and ETE. By taking into account the role of financial, real, and natural capital, the model can be used to explore alternative scenarios driven by uncertainty and risk, such as climate extreme events and their impacts on food production. The paper presents scenario analysis of the impact of an exogenous price, production, and subsidies shock in the food and/or energy dimensions on the economic system, understanding the sources of potential cascade effects, thus providing a systemic risk assessment tool to inform global food security policies. [ABSTRACT FROM AUTHOR]

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]

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]

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]

Collaborative actions between citizens and government agencies at the local level have the potential to raise community resilience to climate risks via social learning and increased social capital. However, for these actions to succeed, community members' values, norms and risk perceptions must support collaborative action and be accompanied by self-efficacy. This paper develops a theoretical framework linking these concepts and applies the framework to a collaborative climate risk project in Singapore, using qualitative data from focus group discussions. We find that pro-social values are a strong enabling factor for residents to engage in collaboration, but that perceptions of low collective efficacy are a potential barrier. In particular, we find that the relative competence of the government leads to a perception of "exemptionalism," which undermines individuals' intentions to devote resources to collaborative action. [ABSTRACT FROM AUTHOR]

Recent work attributing decadal regime changes in temperature to radiative forcing is extended to atmospheric moisture. Temperature, and specific and relative humidity (T, q, RH) from the HadISDH data set were analyzed for regime shifts using the bivariate test. Most shifts in q and T for global and northern hemisphere (NH), and tropical land occurred within a year of each other. Only one shift of q was recorded in the southern hemisphere (SH). RH increased in the NH in 1990–91 and decreased in a series of shifts from the late 1990s, while in the SH decreased from 2001. The tropics have remained neutral, shifting negative over land and positive over the ocean. The global decreases in 2001 and 2011 was −0.56%. Global RH from 32 climate models from the CMIP5 RCP4.5 archive all contained regime shifts but only 4 reached or exceeded the observed decreases by 2100, the earliest in 2056. Regime shifts in RH and fire danger over Australia are consistent with the SH decreases in RH, shifting within one year of global fire season length in 2002, showing that impacts are also being underestimated by current analyses. Methods for nonlinear attribution and the contributing processes for nonlinear change are discussed. These results show that developing a better understanding of nonlinear change in moisture-related climate risk is an urgent task. [ABSTRACT FROM AUTHOR]

Policy experts play an important role in coping with the climate change–human migration nexus. They offer expert solutions to decision makers, and thus, they contribute to de-politicizing the issue. The aim of this paper is to find out how different policy experts envision the climate change–human migration nexus. The Netherlands has been nominated as the seat of a Global Center of Excellence for climate Adaptation and aims to become a Global Center of Excellence in the water safety and security domain. Policy experts were selected based on a structured nominee process. We conducted semistructured interviews with policy experts and analyzed policy expert documentation. Interview transcripts and documents were examined via a coding frame. Unlike policymakers who link climate change and conflict, policy experts stress the economic and political factors of migration in which climate change issues happen. The major difference between the view of policymakers and policy experts on the link between climate change and human migration emerges from the frame of the climate refugee. In the context of the climate change–human migration nexus, policy experts act as a countervailing power that prevents the political exploitation of the nexus into a security issue. [ABSTRACT FROM AUTHOR]

A challenge in addressing climate risk in developing countries is that many regions have extremely limited formal data sets, so for these regions, people must rely on technologies like remote sensing for solutions. However, this means the necessary formal weather data to design and validate remote sensing solutions do not exist. Therefore, many projects use farmers' reported perceptions and recollections of climate risk events, such as drought. However, if these are used to design risk management interventions such as insurance, there may be biases and limitations which could potentially lead to a problematic product. To better understand the value and validity of farmer perceptions, this paper explores two related questions: (1) Is there evidence that farmers reporting data have any information about actual drought events, and (2) is there evidence that it is valuable to address recollection and perception issues when using farmer-reported data? We investigated these questions by analyzing index insurance, in which remote sensing products trigger payments to farmers during loss years. Our case study is perhaps the largest participatory farmer remote sensing insurance project in Ethiopia. We tested the cross-consistency of farmer-reported seasonal vulnerabilities against the years reported as droughts by independent satellite data sources. We found evidence that farmer-reported events are independently reflected in multiple remote sensing datasets, suggesting that there is legitimate information in farmer reporting. Repeated community-based meetings over time and aggregating independent village reports over space lead to improved predictions, suggesting that it may be important to utilize methods to address potential biases. [ABSTRACT FROM AUTHOR]

In Pakistan, research on information and communication technologies-based agricultural information services (ICTbAIS) have gained significant attention owing to the overwhelming population of smallholder farmers (whose information needs are unable to be met by the conventional extension services) and the increasing incidence of climatic risk. This study is, therefore, conducted in the Punjab province of Pakistan (mixed cropping region) to explore farmers' use of ICTbAIS and understand the relationship between farmers' socio-economic attributes, risk perception, and choices of ICTbAIS. A sample of 480 farmers was drawn using a multistage sampling approach, and farmers were interviewed face-to-face. To analyze the dataset, a multivariate Probit (MVP) model was employed. The results show that Television (TV) and mobile-based advisory and mobile-based consultations appeared to be the most used ICTbAIS, followed by radio and internet-based advisory. The estimates of the MVP model showed that farmers' age, education, farmland, tenancy status, off-farm income, and climate risk perception are significant determinants of their choices of ICTbAIS. Based on our results, we suggest policymakers and extension agencies to improve the content of ICTbAIS and make efforts for the awareness and training of farmers regarding the use of contemporary ICTs. [ABSTRACT FROM AUTHOR]

The impact of climate change and related hazards such as floods, heatwaves, and sea level rise on human lives, cities, and their hinterlands depends not only on the nature of the hazard, but also on urban development, adaptation, and other socioeconomic processes that determine vulnerability and exposure. Spatial planning can reduce climate risk not just by influencing the exposure, but also by addressing social vulnerability. This requires that relevant information is available to planners and that plans are implemented and coordinated between sectors. This article is based on a research project in Thailand, particularly on the results of multi-sectoral workshops in the case study region of the Andaman Coast in southern Thailand, and draws upon climate risk, spatial planning, and systems thinking discourses. The article formulates recommendations for planning in the context of Thailand that are relevant for other rapidly growing and urbanizing regions. Among other conclusions, it suggests that systems thinking approaches and cross-sectoral strategies are ways to grasp the interdependencies between and within climate risk and spatial development challenges. [ABSTRACT FROM AUTHOR]

This study quantifies the air quality impact on population mortality from an actuarial perspective, considering implications to the industry through the application of findings. The study focuses on the increase in mortality from air quality changes due to extreme weather impacts. We conduct an empirical study using monthly Californian climate and mortality data from 1999 to 2019 to determine whether adding PM2.5 as a factor improves forecast excess mortality. Expected mortality is defined using the rolling five-year average of observed mortality for each county. We compared three statistical models, namely a Generalised Linear Model (GLM), a Generalised Additive Model (GAM), and an Extreme Gradient Boosting (XGB) regression model. We find including PM2.5 improves the performance of all three models and that the GAM performs the best in terms of predictive accuracy. Change points are also considered to determine whether significant events trigger changes in mortality over extended periods. Based on several identified change points, some wildfires trigger heightened excess mortality. [ABSTRACT FROM AUTHOR]

Businesses, investors, and insurers are requiring better quantitative assessments of their exposure to climate risks and their impact on climate change. They are incorporating these assessments in their day-to-day management and long-term investment decisions. Already, there are efforts to develop international guidelines, common policies and legal frameworks for such assessments, as well as the desire to foster climate financing. We examine recent progress in East Asia and the rest of the world in setting targets, pricing policies, and other mechanisms to reduce climate risks. We develop a model that demonstrates how reduced climate risk management may lower the total cost of capital of firms, thus making them more attractive to investors. We discuss the additional policies needed to support improved climate risk management in investment decisions, private investments in climate science, technology and innovation (STI) expansion, and more widespread adoption of climate financing and principles. Central banks, financial authorities, and governments can advance this objective by creating financial incentives to support investment decision-making. This would take into account factors such as improving climate performance, establishing better climate risk management and reporting requirements to foster green STI, and developing international guidelines and common policy and legal frameworks to support better climate risk management, assessments and reporting. [ABSTRACT FROM AUTHOR]

The Intergovernmental Panel on Climate Change 2013 report claims that climate change from human-induced greenhouse gas emissions will cause increasing temperatures in many regions and various detrimental effects such as rising sea levels, ecosystem changes, droughts, and floods. This study proposes a method for assessing the climate risks resulting from climate change as well as a tool that companies can use to assess those risks. The method for assessing climate risk is proposed in accordance with the ISO 31000 risk management process. We then design a web-based tool to implement the climate change risk assessment process. The data the tool generates enable companies to identify and analyze their climate risks to reduce potentially negative future financial impacts. The data on potential damage costs indicate that climate change is no longer an environmental issue but rather an economic one for companies, and the results presented through the proposed assessment method can be used to establish countermeasures and sustainable planning at companies. The results of this research are significant in that they provide companies with the critical information needed to improve their planning and response to climate risk. [ABSTRACT FROM AUTHOR]

Humanitarian organizations have a crucial role in response and relief efforts after floods. The effectiveness of disaster response is contingent on accurate and timely information regarding the location, timing and impacts of the event. Here we show how two near-real-time data sources, satellite observations of water coverage and flood-related social media activity from Twitter, can be used to support rapid disaster response, using case-studies in the Philippines and Pakistan. For these countries we analyze information from disaster response organizations, the Global Flood Detection System (GFDS) satellite flood signal, and flood-related Twitter activity analysis. The results demonstrate that these sources of near-real-time information can be used to gain a quicker understanding of the location, the timing, as well as the causes and impacts of floods. In terms of location, we produce daily impact maps based on both satellite information and social media, which can dynamically and rapidly outline the affected area during a disaster. In terms of timing, the results show that GFDS and/or Twitter signals flagging ongoing or upcoming flooding are regularly available one to several days before the event was reported to humanitarian organizations. In terms of event understanding, we show that both GFDS and social media can be used to detect and understand unexpected or controversial flood events, for example due to the sudden opening of hydropower dams or the breaching of flood protection. The performance of the GFDS and Twitter data for early detection and location mapping is mixed, depending on specific hydrological circumstances (GFDS) and social media penetration (Twitter). Further research is needed to improve the interpretation of the GFDS signal in different situations, and to improve the pre-processing of social media data for operational use. [ABSTRACT FROM AUTHOR]

The Regional Organization for the Protection of the Marine Environment (ROPME) Sea Area (RSA) in the northern Indian Ocean, which comprises the Gulf, the Gulf of Oman and the northern Arabian Sea, already experiences naturally extreme environmental conditions and incorporates one of the world's warmest seas. There is growing evidence that climate change is already affecting the environmental conditions of the RSA, in areas including sea temperature, salinity, dissolved oxygen, pH, and sea level, which are set to continue changing over time. The cumulative impacts of these changes on coastal and marine ecosystems and dependent societies are less well documented, but are likely to be significant, especially in the context of other human stressors. This review represents the first regional synthesis of observed and predicted climate change impacts on marine and coastal ecosystems across the ROPME Sea Area and their implications for dependent societies. Climate-driven ecological changes include loss of coral reefs due to bleaching and the decline of fish populations, while socio-economic impacts include physical impacts from sea-level rise and cyclones, risk to commercial wild capture fisheries, disruption to desalination systems and loss of tourism. The compilation of this review is aimed to support the development of targeted adaptation actions and to direct future research within the RSA. [ABSTRACT FROM AUTHOR]

We use the COVID-19 pandemic period in 2020 as an exogenous shock event to assess in how far climate risks measured by carbon exposure have entered and established themselves in the valuation of global stocks. In addition to descriptive analyses, we conduct cross-sectional panel regressions to assess the influence of carbon intensity levels on return and risk characteristics during and after the shock period. Furthermore, a difference-in-differences model setup allows us to infer whether these influences were significantly different when comparing pre-shock, shock, and post-shock periods. We find that carbon intensity affected returns significantly and negatively during a time of high uncertainty. In fact, high-emitting stocks suffered significantly more compared to the pre-crisis period. However, they could make up for their additional losses in the recovery period. In line with their high-risk exposure towards stranded assets and climate policy uncertainty, carbon-intensive stocks face higher risk levels in more stable economic times, thus justifying a carbon premium. [ABSTRACT FROM AUTHOR]

In response to the uncertainty of extreme climate change, energy consumption structure has been actively adjusted globally. Based on panel data of 101 countries or regions from 2006 to 2019, a panel data model with fixed effects is used to analyze the heterogeneous impacts of extreme climate risks on global consumption transition. The results show that extreme climate change has promoted the transition of the energy structure, reduced the consumption of fossil energy, and increased the consumption of renewable energy. Meanwhile, there are heterogeneous impacts of extreme climate change risks on the energy transition when different countries suffering from extreme weather conditions. Areas with high levels of economic development and coastal countries are more inclined to respond to climate change through energy transition. It is further confirmed that, under the impact of business cycle and oil price fluctuations, economic recession and falling oil prices will strengthen the correlation between climate risk and the global energy transition, and governments need to pay more attention to the impact of climate risks. [ABSTRACT FROM AUTHOR]

Climate change is an evolving business reality influencing the sustainability of ski tourism worldwide. A new integrated model of the co-evolution of supply (27 ski areas) and demand-side (skier behaviour) climate change adaptation in the ski tourism market of Ontario, Canada is presented. Ski area operations are modeled under a high-emission 2050s scenario, with skier responses to altered operations informed by a survey of 2429 skiers. These market adaptive dynamics reveal new insights into differential climate risk, capturing patterns not apparent when considering only operational conditions of ski resorts. A decoupling of ski season length and skier visitation was found at four ski areas, where, despite average season length losses, visitation increased as a result of reduced competition. Simulated skier visit losses were smaller than reductions in season length, contributing to an increase in crowding. Growing the market of skiers was also identified as a critical adaptation strategy that could offset skier visit losses from shortened seasons. Climate change challenges the future sustainability of ski areas in this market in several ways: profitability of ski areas with substantially shorter seasons, increased snowmaking costs, crowding impacts on visitor experience, and potential overtourism at the few most climate resilient destinations. [ABSTRACT FROM AUTHOR]

Drought is a natural disaster that affects a country's economy and food security. The monitoring of droughts assists in planning assertive actions to mitigate the resulting environmental and economic impacts. This work aimed to evaluate the performance of the standardized precipitation index (SPI) using rainfall data estimated by orbital remote sensing in the monitoring of meteorological drought in the Cerrado–Amazon transition region, Brazil. Historical series from 34 rain gauge stations, in addition to indirect measurements of monthly precipitation obtained by remote sensing using the products CHIRPS-2.0, PERSIANN-CDR, PERSIANN-CCS, PERSIANN, GPM-3IMERGMv6, and GPM-3IMERGDLv6, were used in this study. Drought events detected by SPI were related to a reduction in soybean production. The SPI calculated from the historical rain series estimated by remote sensing allowed monitoring droughts, enabling a high detailing of the spatial variability of droughts in the region, mainly during the soybean development cycle. Indirect precipitation measures associated with SPI that have adequate performance for detecting droughts in the study region were PERSIANN-CCS (January), CHIRPS-2.0 (February and November), and GPM-3IMERGMv6 (March, September, and December). The SPI and the use of precipitation data estimated by remote sensing are effective for characterizing and monitoring meteorological drought in the study region. [ABSTRACT FROM AUTHOR]

This article reviews emerging regulatory and supervisory practices with respect to prudential risks from climate change in the banking sector. It evaluates the theoretical considerations with respect to climate-related financial risks in the banking sector, reviews the related academic literature, and analyzes the policy-related publications from various regulatory authorities. As a result of this assessment, the article concludes that the major regulatory and supervisory expectations can be categorized into four key areas: (i) board-level attention to climate risks and integrating them into internal governance frameworks, (ii) embedding climate risks into strategies and overall risk management frameworks, (iii) identifying climate-related material exposures and disclosure of relevant key metrics, and (iv) assessing capital impact from climate risk through scenario analysis and stress testing. The article also presents a number of implications for banks and banking regulators in other jurisdictions to help them identify the actions required to address climate change risks in the banking sector. [ABSTRACT FROM AUTHOR]

In the current context of fast innovation in the field of urban resilience against extreme weather events, it is becoming more challenging for decision-makers to recognize the most beneficial adaptation measures for their cities. Detailed assessment of multiple measures is resource-consuming and requires specific expertise, which is not always available. To tackle these issues, in the context of the H2020 project RESCCUE (RESilience to cope with Climate Change in Urban arEas), a methodology to effectively prioritize adaptation measures against extreme rainfall-related hazards in urban areas has been developed. It follows a multi-phase structure to progressively narrow down the list of potential measures. It begins using less resource-intensive techniques, to finally focus on the in-depth analysis on a narrower selection of measures. It involves evaluation of risks, costs, and welfare impacts, with strong focus on stakeholders' participation through the entire process. The methodology is adaptable to different contexts and objectives and has been tested in two case studies across Europe, namely Barcelona and Bristol. [ABSTRACT FROM AUTHOR]