Addressing climate risk: financial institutions in emerging markets
While developing countries face the most serious threats of any nations from the physical, economic and social impacts of climate change, there also exist enormous opportunities for these countries to adopt new technologies and sustainable development frameworks that will significantly reduce global greenhouse gas (GHG) emissions. The predominant view of developing nations is that a successor to the Kyoto Protocol, to be negotiated this December in Copenhagen, should include financial and technology transfers from industrialized to non-industrialized countries to support this effort. While government support will be critical, the private sector will realistically have to carry the largest burden, placing emerging market financial institutions (FIs) and their capabilities to manage climate risks and opportunities in the spotlight. This report reviews key findings of a climate change risk survey undertaken by the German development bank DEG. It examines FIs in emerging markets across the globe, highlighting their best practices in addressing climate risk.