Limiting climate risks for finance: Central banks and IAMC researchers publish scenarios

To improve climate related risk management in the financial sector and facilitate a smooth transition toward a sustainable economy, over 90 central banks and financial market supervisors organized in the Network for Greening the Financial System joined forces with science. Together, various IAMC researchers and financial experts now published an updated set of scenarios of an orderly transition, delayed transition, and climate policy failure. They show how early greenhouse gas emissions reductions can minimize both physical and financial risk. In contrast, delayed action or no action would inevitably drive up costs in the medium to long term. The analysis provides sectoral and regional detail to help financial institutions adapt their investment strategies.

More info

Interactive introduction to the NGFS scenarios: https://www.ngfs.net/ngfs-scenarios-portal/

Press release by PIK: https://www.pik-potsdam.de/en/news/latest-news/limiting-climate-risks-for-finance-central-banks-and-science-publish-scenarios

Press release by NGFS: https://www.ngfs.net/en/communique-de-presse/ngfs-publishes-second-vintage-climate-scenarios-forward-looking-climate-risks-assessment

Presentation of the NGFS scenarios:
https://www.ngfs.net/sites/default/files/medias/documents/ngfs_climate_scenarios_phase2_june2021.pdf

Data

Transition risk and macro-economic data via the NGFS IIASA Scenario Explorer:
https://data.ene.iiasa.ac.at/ngfs/

Physical risk data via the NGFS CA Climate Impact Explorer:
http://climate-impact-explorer.climateanalytics.org/impacts/

Technical documentation of the NGFS scenarios:
https://www.ngfs.net/sites/default/files/ngfs_climate_scenarios_technical_documentation__phase2_june2021.pdf