Stenek, VladimirAmado, Jean ChristopheConnell, Richenda2017-08-162017-08-162011https://hdl.handle.net/10986/27888This report analyzes in some detail the risks to project finance and the performance of real-sector investments. Options, futures, derivatives, foreign exchange and more exotic instruments are not specifically addressed. The objectives of institutional investors, such as pension funds, include creation of sustained revenues over a long period of time. Clearly, given this long-term perspective, institutional investors need to be particularly aware of growing risks to their investments in climatically sensitive sectors or regions. This report demonstrates that climate change and its impacts are likely to alter a number of conditions that are material to the objectives of financial institutions. If changing conditions are not actively managed, investments and institutions may underperform. Most investments will be channeled through financial institutions. Given that the main effects of climate change are now well established, there is a considerable opportunity, as well as a responsibility, for these institutions to take a leading role in adaptation to climate change. Institutions managing investments in long-lived assets have both a direct financial risk to consider and the opportunity to create value by working proactively with their clients and other stakeholders to take steps to manage the risks. Going forward, International Finance Corporation (IFC) will initiate the development of more general tools addressing climate risks and investments.en-USCC BY-NC-ND 3.0 IGOABATEMENTACTION ON CLIMATE CHANGEAGRICULTURAL COMMODITIESAIRAIR CONDITIONINGAIR DENSITYAIR EMISSIONSAIR HUMIDITYAIR TEMPERATUREAIR TEMPERATURESALLOCATIONALTITUDEASSET VALUEBIODIVERSITY CONSERVATIONCAPITAL GAINSCARBONCARBON ABATEMENTCARBON FERTILIZATIONCHANGES IN PRICESCLIMATECLIMATE CHANGECLIMATE CHANGE ACTCLIMATE CHANGE ADAPTATIONCLIMATE CHANGE IMPACTCLIMATE CHANGE IMPACTSCLIMATE CHANGE PROJECTIONSCLIMATE CHANGE RISKCLIMATE CHANGE RISK MANAGEMENTCLIMATE CHANGE RISKSCLIMATE CHANGESCLIMATE CONDITIONSCLIMATE DATACLIMATE FACTORSCLIMATE IMPACTCLIMATE IMPACTSCLIMATE INFORMATIONCLIMATE MODELCLIMATE RESILIENCECLIMATE RISKCLIMATE RISKSCLIMATE TRENDSCLIMATE VARIABILITYCLIMATE WARMSCLIMATE-CHANGECLIMATE-CHANGE SCENARIOSCLIMATE-SENSITIVE SECTORSCLIMATIC CONDITIONSCLIMATIC FACTORSCLIMATIC SENSITIVITYCLIMATIC STRESSESCLIMATICALLY SENSITIVECOCOMBUSTIONCOMBUSTION EFFICIENCYCOMMERCIAL INSURANCECONSEQUENCES OF CLIMATE CHANGECONSUMER PRICECOST OF INSURANCECOSTS OF CLIMATE CHANGEDAMAGESDESERTIFICATIONDESERTSDIESELDIESEL GENERATORSDIRECT IMPACTS OF CLIMATE CHANGEDISCOUNT RATEDISCOUNT RATESDROUGHTECONOMIC BENEFITSECONOMIC CONDITIONSECONOMIC GROWTHECONOMIC IMPACTECONOMIC IMPACTSECONOMICS OF CLIMATE CHANGEECOSYSTEMELECTRIC POWERELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY GENERATIONELECTRICITY PRICEEMISSIONEMISSIONSEMISSIONS SCENARIOENERGY DEMANDENERGY PRICESENERGY SECURITYENERGY USEEVAPORATIONEXTREME CLIMATE EVENTSEXTREME CLIMATIC EVENTSEXTREME EVENTSEXTREME HEATEXTREME RAINFALLEXTREME RAINFALL EVENTSEXTREME TEMPERATURESEXTREME WEATHEREXTREME WEATHER EVENTSFINANCIAL ANALYSISFINANCIAL CAPACITYFINANCIAL CONSEQUENCESFINANCIAL COSTSFINANCIAL IMPACTSFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL PERFORMANCEFINANCIAL RETURNSFINANCIAL RISKFINANCIAL RISK MANAGEMENTFINANCIAL RISKSFINANCIAL SECTORFLOODSFOREIGN EXCHANGEFORESTFOREST PLANTATIONFOREST PLANTATIONSFORESTRYFORESTSFOSSIL FUELFUTURE CLIMATE CHANGEFUTURE PRICESGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONSGREENHOUSE GAS EMISSIONS SCENARIOGREENHOUSE GAS EMISSIONS SCENARIOSHEAVY RAINSHIGH TEMPERATURESHURRICANEHURRICANE FREQUENCYHURRICANE SEASONHURRICANESIMPACT OF CLIMATEIMPACT OF CLIMATE CHANGEIMPACTS OF CLIMATE CHANGEIMPACTS OF CLIMATE CONDITIONSIMPLICATIONS OF CLIMATE CHANGEIMPORTSINCOMEINCREASE IN TEMPERATUREINFORMATION ON CLIMATEINSTITUTIONAL INVESTORSINSURANCEINSURANCE COMPANIESINSURANCE COSTSINSURANCE COVERAGEINSURANCE POLICIESINSURANCE PREMIUMSINTERGOVERNMENTAL PANEL ON CLIMATE CHANGEINVESTMENT DECISIONSINVESTMENT STRATEGIESIPCCJOBSLAND DEGRADATIONLOST REVENUELOW-CARBONMANAGING CLIMATE RISKMETALSMETEOROLOGYNATIONAL GRIDNATURAL CLIMATE VARIABILITYNATURAL GASNUCLEAR PLANTSOUTPUT DECLINESPERFORMANCE STANDARDSPOLICY MAKERSPOLLUTION PREVENTIONPORTFOLIOPOWER GENERATIONPOWER SUPPLYPRECIPITATIONPRICE INDEXRAINRAINFALL PATTERNSRAINFALL VARIABILITYRAINY SEASONREAL ESTATERELATIVE HUMIDITYRENEWABLE ENERGYRENEWABLE ENERGY SOURCESRESPONSE TO CLIMATE CHANGERETROFITTINGREVENUE LOSSRISK MANAGEMENTRISKS OF CLIMATE CHANGESCENARIOSSEA LEVEL RISESEASONAL RAINFALLSENSITIVITY ANALYSESSILICONSTEAM GENERATIONSUMMER TEMPERATURESSURFACE TEMPERATURESTAX REVENUESTEMPERATURETEMPERATURE CHANGESTEMPERATURE INCREASETEMPERATURE INCREASESTEMPERATURE THRESHOLDTEMPERATURE THRESHOLDSTROPICAL CYCLONESTROPICAL STORMSUNCERTAINTIESUNEPWARMER TEMPERATURESWATER QUALITYWEATHER PATTERNSWORST-CASEReportInternational Finance Corporation10.1596/27888