Publication:
Just Transition Risks in the Banking Sector

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dc.contributor.authorCalice, Pietro
dc.date.accessioned2025-04-09T19:58:08Z
dc.date.available2025-04-09T19:58:08Z
dc.date.issued2025-04-09
dc.description.abstractThe transition to a net-zero economy presents significant social and economic challenges, particularly for industries and regions reliant on high-carbon activities, hence the need for a just transition. This paper examines exposure to just transition risks—a newly introduced category of financial risk defined as social risks driven by climate transition risks—in the Polish banking sector. Using a sector- and place-based methodology, the paper identifies financial exposures to just transition relevant sectors, classified as declining (subject to job losses) or transforming (requiring adaptation to lower-carbon processes). Leveraging granular credit data, the findings show that 17.2 percent of Polish banks’ financing is exposed to just transition relevant sectors, predominantly in transforming sectors like transportation. Regional analysis reveals that 2.7 percent of total just transition relevant sector credit is concentrated in European Union Just Transition Fund–backed regions, where policy support mitigates some risks, but residual social risks may persist. Meanwhile, 9.1 percent of total credit is linked to non–Just Transition Fund regions, where exposure to just transition risks is potentially higher. Although not conclusive, these findings underscore the need for Polish banks to integrate just transition considerations into risk management frameworks—enhancing due diligence and data aggregation capabilities—and engage with affected stakeholders to mitigate legal and reputational risks while supporting a socially equitable climate transition.en
dc.identifierhttp://documents.worldbank.org/curated/en/099548204092527565
dc.identifier.doi10.1596/1813-9450-11098
dc.identifier.urihttps://hdl.handle.net/10986/43046
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11098
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectJUST TRANSITION
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL REGULATON
dc.subjectCLIMATE CHANGE
dc.titleJust Transition Risks in the Banking Sectoren
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-04-09
okr.date.doiregistration2025-04-14T12:00:58.277026Z
okr.date.lastmodified2025-04-09T17:04:55Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099548204092527565
okr.guid099548204092527565
okr.identifier.docmidIDU-af8694a9-a704-4610-9945-cec51616b71a
okr.identifier.doi10.1596/1813-9450-11098
okr.identifier.externaldocumentum40005983
okr.identifier.internaldocumentum40005983
okr.identifier.reportWPS11098
okr.import.id7060
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099548204092527565/pdf/IDU-af8694a9-a704-4610-9945-cec51616b71a.pdfen
okr.region.geographicalWorld
okr.topicGovernance::Governance and the Financial Sector
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicEnergy::Energy Sector Regulation
okr.topicEnvironment::Climate Change Impacts
okr.unitEFI-ECA-FCI-Finance-1 (EECF1)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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