Carbon Asset Risk: Discussion Framework

The Carbon Asset Risk Discussion Framework is a resource for financial institutions and was developed by WRI and the UNEP Finance Initiative in consultation with more than 100 energy, climate and finance experts.

This working paper provides objective, fact-based guidance to finance professionals for evaluating their exposure to the non-physical risks of climate change, called carbon asset risk. This type of financial risk is driven by non-physical factors during the transition to the low-carbon economy: changing public policy and private sector regulation, rapidly evolving technologies, unpredictable economic markets, and shifting public opinion.