Policy Report No. 3: Shielding financial balance sheets against stranded assets

Year Published

2020

Contributing Organizations

Transforma

Type of Resource

Research/Insights Report

Languages

Spanish

Relevant Topics

Core Topic

Climate Policies & Frameworks

Target Audience

All

Relevant Geography

Latin America and the Caribbean

Resource Description

This report examines the financial risks associated with stranded assets in Colombia, particularly in the context of a low-carbon transition and climate impacts. It focuses on public development banks and evaluates how climate risks affect asset valuation and risk management.

Why This Matters

Public development banks play a central role in financing national development. Proactively addressing stranded asset risks helps protect public investments and maintain financial stability in the face of climate change.

Key Insights

Highlights agriculture, energy, and infrastructure as sectors vulnerable to physical and transition climate risks
Reviews Colombia’s legal and regulatory frameworks for asset impairment, risk classification, and portfolio management
Analyzes two case studies of Colombian development banks to assess current practices
Recommends strengthening climate risk management and integrating climate factors into credit risk assessments

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