Understanding the Economic Impacts of Climate Change

Climate change poses an unprecedented set of challenges. At this event, UNEP FI and the National Institute of Economic and Social Research (NIESR) will present the key learnings from their latest report “Economic Impacts of Climate Change: Exploring short-term climate related shocks for financial actors with macroeconomic models”.

The report aims to advance the financial sector’s knowledge of applying macroeconomic models to climate change scenarios. The report explores the importance of short-term scenarios in providing insights into immediate threats to financial stability and the financial sector’s preparedness for them.

As a part of this report, NIESR and UNEP FI developed three scenarios to model the short-term economic risks of climate-related events. The three scenarios are:

1. sudden rise in carbon price
2. spike in oil price and
3. trade war.