🌱 Monday’s LawFin #Research #Seminar:
Fellow @bhavyaas.bsky.social (UCSC) presents “Information about Climate Transition Risk and Bank Lending,” examining how banks price firms’ exposure to transition risk.
👉 Join on-site or online: bit.ly/SeminarSharma
#ClimateFinance #Banking #TransitionRisk

One of the issues that isn't fixed by frameworks or guidelines for #TransitionFinance is the challenge that companies making the investments needed may get penalized with lower credit ratings vs peers who ignore #TransitionRisk #SustainableFinance

Physical vs transition risk:
🌊 Floods & wildfires = obvious
⚖️ Policy swings, carbon taxes, customer backlash = underestimated
Leading companies manage both like financial liabilities. 4/7

#transitionrisk #climateriskanalytics #netzerostrategy

Catastrophe bond sales hit record as insurers offload climate risks Investors attracted by high yields, while recent natural disasters have failed to trigger losses for bondholders

“Insurers are selling so-called catastrophe bonds at a record rate as they seek to offload the growing risk from climate change on to investors eager for high returns.”

#TransitionRisk #JustTransition

Marc-Philipp Bohnet presents: Not Just Knocking on Wood: The Short- and Long-Term Pricing of Deforestation Risk on Global Financial Markets (joint work with Philip Fliegel and Tycho Tax).
#Deforestation #TransitionRisk
2/7👇

EU agriculture faces €28 billion annual average loss from extreme weather, projected to reach €40 billion by 2050, with most losses uninsured

“Current annual average losses from climate risk – drought, precipitation, hail and frost - equate to 6.4% of EU crop yields rising to over 10% in the worst years…Drought accounts for over 50% of total agricultural losses…Only 20-30% of climate-related losses are insured..”

#TransitionRisk

The EEA has launched a new interactive drought map updated monthly and based on near real-time data.

Data over the last number of weeks indicates the very high share of land in Ireland exposed to drought. Over 90% in Ireland during 11 - 20th April.

#climatechange #transitionrisk

Irish business will be able to shelve climate reporting as EU pursues deregulation Fears of a far-right takeover and the economic fallout of US tariffs caused an unlikely coalition to form in favour of pausing EU climate rules

Giving large companies two additional years to prepare for climate disclosure reporting at this late stage in the climate and biodiversity crises risks losing essential time to build resilience for the growing risks ahead.

#transitionrisk

www.businesspost.ie/news/irish-b...

Image shows description of stranded assets as set out in the linked report.

UK Economy Heading for $141 Billion Loss Caused by Stranded Fossil Fuel Assets, With Pension Funds on Track to Lose $19 Billion

#TransitionRisk

uksif.org/stranding-pr...

Revealed: The €9 billion fossil fuel footprint in Irish private pensions The new data shows for the first time the the average exposure of private pensions in Ireland to fossil fuels

“At least €9 billion from Irish private pensions is estimated to be invested in the fossil fuel sector, new analysis by the Business Post shows.
The figures are based on sustainability disclosures for 2023 made individually by Ireland’s main private pension providers”

#TransitionRisk

Macroeconomic, sectoral and financial dynamics in energy transitions | Journal paper by Andrew Jackson and Tim Jackson This paper develops a stock-flow consistent, input-output model to simulate risks, opportunities, and non-linear dynamics associated with green investment, energy returns, financial risks, and vari…

Macroeconomic, sectoral and financial dynamics in energy transitions: A stock-flow consistent, input-output approach | New journal paper by Andrew Jackson and @proftimjackson.bsky.social. → cusp.ac.uk/themes/s2/pa...

cc #SystemDynamics #EcologicalEconomics #TransitionRisk #StrandedAssets #EROI

NGOs formulated their own risk concept: #TransitionRisk
If you don't bow to their demands for transition, you will face the risk of lost markets, investor boycotts, reputation damage and litigation.
My latest shows how they really don't understand risk management
www.thefirebreak.org/p/climate-tr...

State 'facing €20bn fine' if it fails to reduce emissions The State could face a cost of €20bn if it fails to achieve reductions in carbon emissions in 2030, according to an assessment by the watchdog which advises on the public finances.

‘The State could face a cost of €20 billion if it fails to achieve reductions in carbon emissions in 2030..In its latest report, the Irish Fiscal Advisory Council said lower estimates assumed Ireland would follow through on measures "that it looks increasingly unlikely to implement"’
#TransitionRisk