reporter
Name Affiliation Title Ryo Hibiya Specialist Contractor, Environmental Management and Climate Change Group, Global Environment Department
summary
Date: November 19, 2024
Organized by: International Development Finance Club (IDFC)
Name of venue (pavilion name): International Development Finance Club (IDFC) Pavilion
speaker
Name Affiliation Title Claire Echalier Program Director, Development Finance, Institute for Climate Economics (I4CE) Jaspreet Kaur Analyst, Climate Policy Initiative (CPI) Remco Fischer Head, Climate Change, United Nations Environment Programme and Finance Initiative (UNEP FI) Natasha Chaudhary, Principal Researcher, Climate Risk, Institute for Climate Economics (I4CE) Alina Mika, Head of Environmental and Financial Systems, European Bank for Reconstruction and Development (EBRD) Nora Lamblett, Senior Environmental and Social Officer, Climate Change, Inter-American Development Bank (IDB) Amal Benesa, Head of Sustainability, African Bank (BOA) Head of Sustainability, Bank of Africa (BOA) Komarambi Moglo Environmental Specialist, Bank of West Africa (BOAD)
Background and Objectives
The event focused on recent findings on climate risk management as it relates to financial institutions, sharing their experiences and discussing how financial institutions can work together to better manage climate risk and how they can develop financial products that adapt to the risks their counterparties may face. The participants shared their experiences and discussed
Contents
In his introduction, Mr. Echalier of the Institute for Climate Economics (I4CE) stated that financial institutions integrating climate-related risks into their frameworks and strategies can play an important role in enhancing the resilience of developing countries to climate impacts.
As an introduction, Karl of the Climate Policy Initiative (CPI) said that financial institutions and investors can mitigate climate risks and create positive changes in their own markets by successfully integrating strategies that contribute to climate action into their decision making.
Mr. Fischer of the United Nations Environment Programme and Finance Initiative (UNEP FI) said that the TCFD (Task Force on Climate-related Financial Disclosures) is beginning to transform the ESG investment market and stressed the importance of financial institutions analyzing and identifying issues for their counterparties.
Mr. Chaudhary of the Institute for Climate Economics and the Economy (I4CE) said that current practices in the financial industry generally fail to adequately identify risk assets, and stressed the need for private financial institutions to rethink their stranded asset risk management practices and shift to a broader concept of “assets at risk. He emphasized the need for private financial institutions to rethink their management approach to stranded assets risk and shift to a broader concept of assets at risk.
During the panel discussion, Mr. Mika of the European Bank for Reconstruction and Development (EBRD) began by noting that all EBRD investments are subject to climate risk assessment, and that it is important to analyze the climate change vulnerability of the counterparty and the sectors with the highest emissions.
Mr. Lamblett of the Inter-American Development Bank (IDB) noted that the IDB is further strengthening its alignment with the Paris Agreement and pilot projects to address climate stress, as climate risks are already apparent and becoming more conscious, and that it is necessary to expand adaptation assistance to clients vulnerable to climate impacts, such as small farmers. He stated that there is a need to expand adaptation support for small farmers and other clients vulnerable to climate impacts.
Referring to accelerating climate change and recent geopolitical risks, Mr. Benesa of Bank of Africa (BOA) said that the climate scenarios on which financial risk measurement is based need to be constantly fine-tuned.
Mr. Moglo of the Development Bank of West Africa (BOAD) introduced the climate shock resilient loan program launched this year. He stated that the Bank hopes to gradually expand the geographic coverage of its insurance products related to early warning systems.
Mr. Usui, Manager of the Environmental Management and Climate Change Response Group, Global Environment Department of JICA, stressed the need to reduce vulnerability in each development sector while pursuing co-benefits with development projects, and the need to enhance resilience and minimize loss and damage, referring to preventive disaster management.
© Source JICA
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