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Climate Change and Sovereign Risk

Climate change is an increasingly important issue for policy makers globally, with material impacts on Southeast Asian economies and other regions highly vulnerable to climate risks. This report provides a timely and very comprehensive assessment of the role played by climate change on sovereign risk. In particular, a number of transmission channels through which climate change affects sovereign risk are discussed in the report: the fiscal impacts of climate-related natural disasters, the fiscal consequences of adaptation and mitigation policies, the macroeconomic impacts of climate change, the impacts of climate risk on financial sector stability, the international trade and capital flow dimension, and the impact of climate change on political stability