Existing approaches to assess the economic impact of climate policies tend to overlook the financial sector and to focus only on direct effects of policies on the specific institutional sector they target, neglecting possible feedbacks between sectors, thus, underestimating the overall policy...

Climate risks often do not happen in isolation but can compound with other sources of stress such as pandemics and pre-existing financial vulnerabilities, particularly in emerging countries. Compounding events increase the complexity of risk, leading to cascading impacts in the economy and...

While there is a broad understanding that the financial system can play a major enabling role in achieving the low-carbon transition, it is not well understood under which specific conditions such an orderly transition scenario when finance works as an enabler could occur. Even more importantly,...