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Sustainable Finance

The focus of the Sustainable Finance group is how to effectively mobilise finance to deliver climate action and sustainable development.

The group’s aim is to enable the transformation that is needed across the financial system to realise the Paris Agreement and the Sustainable Development Goals. This will require changes in financial analysis, financial policy and regulation as well as financial practice across the US$386 trillion in assets in banking, capital markets, investment funds and the insurance sectors. Momentum is building, but it is still not at the speed or scale required. Breakthrough approaches will be needed to reconnect finance with the real economy at a time of multiple ecological, social and technological transitions.

The group’s work consists of academic research, policy analysis, work with practitioners across a range of financial sectors, as well as communications and outreach. We are pursuing a number of interlocking work themes:

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The group’s monthly newsletter includes a lead guest post from our Sustainable Finance Leadership series of commentaries from thought leaders in the field. Contributors range from leading policymakers to investors, asset managers and academics.

Research

Pricing ambiguity in catastrophe risk insurance

Pricing ambiguity in catastrophe risk insurance

The authors of this paper apply a newly developed insurance pricing model to two catastrophe model data sets relating to hurricane risk in two locations in the Atlantic basin, estimating ambiguity loads – the extra insurance premium due to ambiguity – and showing how these depend on the insurer’s attitude to ambiguity. read more »

Policy

Addressing the impacts of climate change through an effective Warsaw International Mechanism on Loss and Damage

Addressing the impacts of climate change through an effective Warsaw International Mechanism on Loss and Damage

This paper is a submission to the second review of the Warsaw International Mechanism (WIM) on Loss and Damage under the United Nations Framework Convention on Climate Change, which will take place at COP25 in December. The submission looks at the Loss and Damage policy debate, how it relates to other international frameworks and efforts in the areas of mitigation, adaptation, disaster risk reduction and sustainable development, and identifies how the WIM can be most effective. read more »

News

Addressing the impacts of climate change through an effective Warsaw International Mechanism on Loss and Damage

Addressing the impacts of climate change through an effective Warsaw International Mechanism on Loss and Damage

Rebecca Byrnes and Swenja Surminski outline progress of actions taken under the Warsaw International Mechanisms on Loss and Damage - which is designed to help countries deal with the harm caused by climate change - and how to enhance its effectiveness, as the COP25 climate conference gears up to reviewing the mechanism in December. read more »