Climate Transition Spillovers and Sovereign Risk: Evidence from Indonesia
In Southeast Asia, several countries are already exposed to socio-economic and financial losses induced by physical climate risk. Some Southeast Asian countries exposed to physical risk, such as Indonesia, are also leading producers and exporters of fossil fuels. This compounds the country’s climate impacts by exposing them transition risk, or a situation in which climate […]
Climate Transition Spillovers and Sovereign Risk: Evidence from Indonesia
Combating climate change requires coordinated global efforts, yet much of the current climate policymaking is led by developed countries. A case in point is the European Union (EU)’s ambitious climate change mitigation package. To prevent carbon leakage, the EU adopted a resolution in 2021 to implement a Carbon Border Adjustment Mechanism (CBAM) as a part […]
Climate Change and IMF Debt Sustainability Analysis
There is now a consensus that climate change and climate change policy pose ‘macro-critical risks’ to national economies and the global economy as well. The frequency of climate-related disasters has increased by an order of five over 50 years, according to the World Meteorological Organization. Furthermore, transition risks emerge from a late and uncoordinated introduction […]
