Podcast: Climate Risk and Its Implications for Financial Stability

Year Published

2016

Contributing Organizations

International Monetary Fund (IMF)

Global Affairs Canada (GAC)

Toronto Centre

The Swedish International Development Cooperation Agency (Sida)

Type of Resource

Webinar or Podcast

Languages

English

Relevant Topics

Core Topic

Introduction to Climate Change

Topic 2

Climate & Transition Finance

Target Audience

Financial Services Providers

Governments & Policymakers

Banks

Relevant Geography

Global

Resource Description

This webinar explores the implications of climate risk for financial stability. It examines how climate change creates physical, liability, and transition risks, and how financial actors can address them through disclosure practices and risk management tools.

Why This Matters

The resource underscores the role of supervisors in promoting transparency, identifying vulnerabilities, and enhancing the resilience of the financial system to climate-related risks.

Key Insights

Climate risks can disrupt asset values, reshape markets, and undermine financial stability
Disclosure standards are inconsistent and often fail to capture firms’ climate exposures
Policy uncertainty increases transition risk, complicating carbon pricing and long-term planning
Subnational bond markets and fossil-dependent economies may face rising instability
Scenario analysis, stress testing, and shadow pricing can support better risk

Secondary File Resources

Secondary Resource Link(s)

Direct link to TC Website for further information

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