Designing a Resilience and Sustainability Trust

In 2021, the International Monetary Fund (IMF) issued a historic allocation of Special Drawing Rights (SDRs) equivalent to $650 billion. These supplementary international reserve assets were allocated to help meet the liquidity bottlenecks facing many countries due to the COVID-19 pandemic. However, because of the IMF’s quota-based system, SDRs primarily flowed to more advanced economies, […]

Transition Risk Management for Commercial Banks

Risk management and financial disclosure of transition risk has become a mandatory fiduciary duty for financial institutions worldwide as investors require them to disclose climate-related financial risks. As such, it is imperative for banks to assess transition risks in their loan portfolios and find mitigating solutions to those risks. Banks should identify the best-fit valuation […]

Transitional Risks to Commercial Banks

The financial crisis of 2007–08 taught financial institutions to make macroeconomic stress tests central to their risk management strategy. In the transition to a low-carbon economy, banks must appropriately manage the transition risk assets they have financed to ensure financial stability. Globally, the banking industry is integrating environmental, social, and governance (ESG) risk, physical risk, […]

Mujib Climate Prosperity Plan

Hard-fought development gains and increased productivity will continue to be undermined or reversed if the 1.5°C limit of the Paris Agreement is breached. Episodic climate-induced disasters and losses are only one subset of the threats the Bangladeshi people and industry face. The other involves slow-onset effects such as drought, sea-level rise and ocean acidification which […]

Toward Development-Centered Climate Change Policy at the International Monetary Fund

Climate change and policy responses to address climate change pose significant risks to financial and fiscal stability, poverty and inequality, and the long-run growth prospects of the world economy. In the midst of a global pandemic, 2021 has already been marked by a slew of extreme weather events, wreaking havoc on countries and economies across […]

Re-channeling Special Drawing Rights for a Climate Resilient and Just Transition: Prospects for a Resilience and Sustainability Trust

In a historic breakthrough for the multilateral system, the International Monetary Fund (IMF) approved the global allocation of $650 billion in Special Drawing Rights (SDRs)—the inter- national reserve asset issued by the IMF—to support liquidity and foster the resilience of the global economy in the wake of the COVID-19 pandemic. While unprecedented in its scope, […]

The Need for a Development-Centered Climate Change Policy at the International Monetary Fund

Climate change and climate change policy pose significant risks to financial and fiscal sta- bility. They also pose risks and offer opportunities for growth and development prospects. As the only multilateral, rules-based institution charged with maintaining the stability of the international financial and monetary system, the International Monetary Fund (IMF) should put in place an […]

Accelerating Resilience and Climate Change Adaptation: Strengthening the Philippines’ Contribution to Limit Global Warming and Cope with its Impacts

In its first Nationally Determined Contribution (NDC) to the Paris Agreement, the Philippines committed to a GHG emissions reduction/avoidance of 75 percent for the period 2020 to 2030, referenced against a projected business-as-usual cumulative emission for the same period. However, the numbers do not add up, critical sectors such as forestry, which is central to […]