On May 5, 2021 at 09:00 CET, ADBI is holding a webinar "ADBI Webinar on Climate Change and Sovereign Risk".
Climate change hazards can have substantial negative effects on economic activity in climate vulnerable Asia and the Pacific and also pose risks to the longer-term sustainability of public debt. When sovereign credit risk worsens, the higher cost of borrowing has negative ramifications for important public investment areas, creating additional financial burdens for a government in the long run. Understanding the implications of climate change for sovereign risk is particularly crucial today, given that public finances are already under considerable strain due to the COVID-19 crisis. The pandemic has highlighted the pressing need for governments to climate-proof their economies and public finances to prevent an ever-worsening spiral of climate vulnerability and unsustainable debt burdens.
This ADBI webinar will explore how climate change affects sovereign risk and the significance for economies in Asia and the Pacific, in conjunction with the 54th Asian Development Bank Annual Meeting. Part one will feature new research on the empirical relationship between climate change and sovereign risk. Part two will spotlight approaches for managing climate-related sovereign risks.