Thom Wetzer

New NGFS Climate Scenarios: A guide for financial institutions 📖 The Network for Greening the Financial System (NGFS) has just released its 2024 update on climate scenarios, a crucial tool for anticipating the risks and costs of climate transition. Our article breaks down the key insights from this report: 🔹 Damage Function: A new modelling feature that refines economic impact predictions from physical risks, from droughts to hurricanes. 🔹 Transition Scenarios: From "Net Zero 2050" (carbon neutrality by 2050) to "Hot House World" (+3°C), each pathway presents specific challenges for investment and resilience. 🔹 Carbon Cost and Economic Impact: In a carbon-neutral context, the report projects a carbon price of $300/tonne by 2035, essential for incentivising businesses to adopt clean technologies. 🔹 Global Alignment: With consistent international standards, the NGFS promotes a harmonised approach to climate resilience, meeting the expectations of both investors and regulators. ➡️ Read our article to explore how these scenarios could transform climate risk management in the financial sector. https://lnkd.in/eaYGzU-C #NGFS #NetZero #Climate #Finance #Carbon

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🌿 Biodiversity Credit Alliance (BCA) released the second issue paper on "Review Mechanisms for Supply-side Quality and Integrity in the Biodiversity Credit Market": https://lnkd.in/dnSHmaKr Manesh Lacoul, Global Coordinator, Biodiversity Credit Alliance, shares his insights: "BCA is about to publish its second issue paper, which delineates the process of developing an independent review mechanism for the emerging biodiversity credit market. BCA work streams are initiated to address the need for equity, quality and integrity early on in the development of the biodiversity credit market to help lay a foundation for its long-term sustainability and success.    Only with strong foundations will the market contribute effectively to global biodiversity conservation goals while upholding ethical standards and promoting social equity as outlined in the Kunming-Montreal Global Biodiversity Framework.   BCA is aligning its efforts to provide ongoing guidance in the direction illustrated in this paper, mobilizing partners and engaging in a broad stakeholder consultation process to establish this key component of the market governance framework.   BCA is also currently in its final preparations for the release of its third issue paper “Definition of a Biodiversity Credit”. Learn more: https://lnkd.in/dx_rniZA #biodiversity #biodiversitycredits #BCA #supply #integrity

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👥 The Network for Greening the Financial System (NGFS) is publishing today a revised Guide on climate-related disclosure for central banks. In this report, the NGFS ✔ Provides baseline and building block disclosure recommendations to cater both central banks that are new to climate-related disclosures as well as central banks at more advanced disclosure levels; ✔ Includes a new chapter on metrics and targets, profiting from internal work on sustainable and responsible investment; ✔ Operationalizes for central banks the recommendations of the Task Force on Climate-Related Financial Disclosures; ✔ Delivers on its commitment to build on experience gathered by NGFS members.   📢 Want to learn more? Find the report here : https://lnkd.in/eAbszj-N

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🌍 Exciting News in the Fight Against Deforestation! 🌳 It is getting easier for all sort of financial institutions to manage and mitigate deforestation in their portfolios! In this context, WWF has launched its introductory guide on deforestation and conversion for central banks, financial regulators, and supervisors & how these players can mitigate their contribution to deforestation. 📘 Our recent publication “Making Deforestation Due Diligence Work in Practice – A Practical Methodology & Implementation Guidance for Financial Institutions” supports this initiative. While there are a plethora of data sources out there, our contribution is that the methodology can be applied to the entire investment universe. ✨ Our Contributions: 💡 Step-by-Step Guide: Developed in collaboration with Andra AP-fonden (AP2) and Global Canopy, this guide simplifies the use of deforestation-related data, making due diligence more efficient. 💻 Online Resources: The guide is complemented by an online code repository on Github “Deforestation Free Finance” which makes our methodology ready for implementation 📊 Open-Source Dataset: The repository also contains an adaptable dataset for a broad universe, which allows financial institutions to start right away. 🔍 Explore Our Resources: 1️⃣ Press Release: https://lnkd.in/dZarfX-C 2️⃣ Methodology Report; https://lnkd.in/dthA-9Gw 3️⃣ GitHub Repository & Open Source Data: https://lnkd.in/ef5rJfAP ✔ Just three months ahead of the UN Biodiversity Conference COP16, our guide and tools are designed to make sustainable finance practical and effective. 💡 Join Us: This summer, we're hosting free online workshops to walk through our methodology for tackling deforestation due diligence. Reach out to our Senior Analyst Malte Hessenius to schedule your session. #Deforestation #SustainableFinance #ClimateAction #WWF #FinancialInstitutions #Biodiversity #COP16

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REMINDER📺💻 Lily Burge, Senior Policy Analyst, Climate Bonds Initiative will be joining a panel discussion as part of the next Inevitable Policy Response Quarterly Briefing Webinar, in partnership with Principles for Responsible Investment 🤝 The Q2 webinar will see expert panellists assess global developments in climate policy mapped by IPR. Energy, transition, land use & nature progress will be explored against the flagship IPR 1.8C Forecast Policy Scenario (FPS). Joining Lily 👇 Kavita Srinivasan, Head of Operations, Inevitable Policy Response Dr. Nicole Röttmer, Partner, Deloitte Brian Hensley, Partner, Kaya Partners William Attwell, Director, Climate Research, Sustainable Fitch Moderated by Daniel Gallagher, Ph.D., Senior Lead, Climate Change, Principles for Responsible Investment 📅 Wednesday, 10th July 2024 ⏰ 14:00 - 15:00 BST / 15:00 - 16:00 CST Registration: https://ow.ly/lBhn50SaAYP h #iprforecasts #quarterlybriefings #webinar #climate #policy #transition #investment #acceleration #netzero #energy #landuse #nature

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Multilateral development banks (MDBs) have played an important role in the provision and mobilisation of international climate finance, thanks to both their direct finance and their capacity to de-risk and mobilise private finance. In opening remarks at COP29 Azerbaijan this week, UN Secretary-General António Guterres urged MDB stakeholders to ‘use [their] position to push for change’. When it comes to the New Collective Quantified Goal (NCQG) on climate finance, are they for it? In a new insight piece, Elizabeth Tan and Hans Peter Lankes break down what MDBs need to do to rise to the challenge of the NCQG ⬇️ #COP29 #ClimateFinance #NCQG #MDBs #ReformMDBs

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As day 10 of #COP29 comes to a close, the spotlight remains on the stalemate in climate finance talks, with no progress on the New Collective Quantified Goal (NCQG) to support poorer nations. Sophie Morello delves into the challenges delegates face, including ensuring funds reach vulnerable regions like Afghanistan without misuse. Urbanisation, transport, and tourism also featured today, with Article 6’s carbon credit framework offering new opportunities for tourism to offset emissions. Read the full article here: https://lnkd.in/ejF4_9kA Tomorrow’s focus shifts to nature, biodiversity, and equality- will we finally see momentum?

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This deliverable describes the development of a methodological approach for impact measurement in four months. The key-outcome is the dRural impact measurement framework (dIM) that draws on six capitals to assess economic and social progress in European regions. To view and download visit: https://lnkd.in/dvTvYK5M

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The #ClimateAdaptation financing gap is estimated to more than USD 387 billion per year. Dive into our latest framework mainstreaming adaptation impact assessment across the finance sector and supporting the mobilisation of #PrivateFinance for adaptation. https://ow.ly/l4RR50RAiLX

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Climate and environmental risks are systemic threats to our economies and financial systems that international supervisory bodies have repeatedly highlighted. Any systemic financial risk calls for adequate macroprudential policy; climate risks are no exception. In their new policy brief, Satoshi Ikeda and Pierre Monnin suggest using systemic capital buffers to address climate systemic risks. They propose four guiding principles—absorption, prevention, individualization, and recalibration—to design systemic capital buffers that enhance the robustness of financial institutions against climate shocks and support transition efforts to mitigate the buildup of these risks over time. #SustainableFinance #ClimateRisks #Macropru #SystemicRisks https://lnkd.in/dm2-tm4Q

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🚨 JUST RELEASED 🚨 "Scenarios for Assessing #Climate-Related Risks" 🌱 In partnership with United Nations Environment Programme Finance Initiative (UNEP FI), this report identifies short-term scenario narratives for financial use 📊 particularly for #Assetmanagement, #insurance, bankers and investors ⬇️ https://hubs.la/Q02FNxbk0

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Nature-related risks are as detrimental or more to an economy as risks from climate-related events. 🌎🌿 In the first-of-its-kind analysis led by the Green Finance Institute, UNEP-WCMC and partners quantify the impact of nature degradation on UK’s economy. The report reveals: 🔸Damage to the natural environment, both domestic and global, could lead to an estimated 12% loss of GDF as early as 2030. 🔸Action is needed to bolster the resilience the UK’s economic and financial sectors, and help steer financial flows away from the activities that create these nature risks. Access the full report here: https://lnkd.in/dFJdScYb

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Nature-related risks are as detrimental or more to an economy as risks from climate-related events. In the first-of-its-kind analysis led by the Green Finance Institute, UNEP-WCMC and partners quantify the impact of nature degradation on UK’s economy. The report reveals: 🔸Damage to the natural environment, both domestic and global, could lead to an estimated 12% loss of GDF as early as 2030. 🔸Action is needed to bolster the resilience the UK’s economic and financial sectors, and help steer financial flows away from the activities that create these nature risks. Access the full report here: https://lnkd.in/dFJdScYb

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A new study by The Breakthrough Institute reveals that low-income nations, responsible for just 0.5% of global emissions, receive only marginally more support for mitigation than adaptation. Explore how multilateral development banks can close the up to $359B annual adaptation gap in Cipher News: https://nt-z.ro/49um1Q0

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Over the years our research team on climate finance had several conversations with Yuval Millo about our joint research interests and it's great to finally be able to share some of these discussions via our blog. Engagement takes a central role in climate finance and in our latest blogpost (see below) we discuss with Yuval the limits of effective stewardship in the context of pension funds. One of the things I found most interesting in the discussions with Yuval is the idea that finance is not a chain of investments, but rather a complex network and so trying to effect change from one end of the network to the other is not easy. Thanks Yuval Millo for the chat! https://lnkd.in/dc6SUGzu #climatechange #climatecrisis #climatefinance #pensionfunds #stewardship #ESG #engagement

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Excellent discussion with Nadia Calvino on the sidelines of the #IMFMeetings in Washington today. The European Investment Bank (EIB) and other multilateral development banks have a critical role in unlocking climate finance at greater multiples - making it more affordable and more accessible. #COP29

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