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The study provides forward-looking estimates for economic damages from floods and tropical cyclones (TC) for a wide range of countries using global datasets. Damages are estimated for three Intergovernmental Panel on Climate Change (IPCC) scenarios and aggregated at the country level, building them from geographically disaggregated estimates of hazard severity and economic exposures across 183 countries. The results show that, for most countries, floods and TC’s damage rates increase (i) during the estimation span of 2020 to 2100, and (ii) with more severe global warming scenarios. In line with other global studies, expected floods and TCs damages are unevenly distributed across the world. The estimates can be used for a wide range of applications, as damage rates represent the key variable connecting climate scenarios to economics and financial sector risk analysis.
Maldives is a tourist dependent economy with a small financial sector dominated by state-owned banks. Protracted fiscal and external deficits have raised concerns about debt sustainability and the level of international reserves. Large government funding needs have resulted in a strong sovereign-bank nexus, and rationing of foreign exchange by the Maldives Monetary Authority (MMA) has fueled a parallel foreign exchange market.
A Technical Assistance (TA) mission was conducted in Dhaka, Bangladesh, from March 5 to 9, 2023, to assist authorities in setting up a framework to assess physical climate risk in the financial system. The TA mission focused on (i) proposing a risk assessment framework tailored to available data, with a focus on the impact of floods on the banking sector, (ii) taking stock of financial and climate data availability and identifying data gaps, (iii) setting up collaboration and data sharing mechanisms, taking into account legal obligations and confidentiality constraints, between multiple agencies. The mission identified the main climate and financial data sources and existing data gaps, propo...
The Netherlands is exposed to both physical and transition risks from climate change. Due to unique geographic factors, about 60 percent of the land surface in the Netherlands is vulnerable to flooding from the sea and the large rivers, with nearly 26 percent of the land surface below sea level. Also, the Netherlands has high levels of nitrogen depositions from agriculture and transportation, exceeding the critical value set by EU Directives.
This paper evaluates the global economic consequences of physical climate risks under two Shared Socioeconomic Pathways (SSP 1-2.6 and SSP 2-4.5) using firm-level evidence. Firstly, we estimate the historical sectoral productivity changes from chronic climate risks (gradual changes in temperature and precipitation) and extreme climate conditions (representative of heatwaves, coldwaves, droughts, and floods). Secondly, we produce forward-looking sectoral productivity changes for a global multisectoral sample of firms. For floods, these estimates account for the persistent productivity changes from the damage to firms’ physical capital. Thirdly, we assess the macroeconomic impact of these shocks within the global, multisectoral, intertemporal general equilibrium model: G-Cubed. The results indicate that, in the absence of additional adaptation relative to that already achieved by 2020, all the economies would experience substantial losses under the two climate scenarios and the losses would increase with global warming. The results can be useful for policymakers and practitioners interested in conducting climate risk analysis.
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Financial Soundness Indicators (FSIs) are measures that indicate the current financial health and soundness of a country's financial institutions, and their corporate and household counterparts. FSIs include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate. FSIs are calculated and disseminated for the purpose of supporting macroprudential analysis--the assessment and surveillance of the strengths and vulnerabilities of financial systems--with a view to strengthening financial stability and limiting the likelihood of financial crises. Financial Soundness Indicators: Compilation Guide is intended to give guidance on the concepts, sources, and compilation and dissemination techniques underlying FSIs; to encourage the use and cross-country comparison of these data; and, thereby, to support national and international surveillance of financial systems.
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This Handbook integrates innovative, interdisciplinary approaches to the production of Iberian imperial borderlands in the Americas, from southwestern U.S. to Patagonia, and their connections to trade and migratory circuits extending to Asia and Africa. In this volume borderlands comprise political boundaries, spaces of ethnic and cultural exchange, and ecological transitions.