Climate Finance

Our research shows that low- and lower-middle-income countries are disproportionally at risk of economic losses from, and are most exposed to, physical climate risks. As extreme weather conditions and worsening physical risks continue to increase and influence credit fundamentals, more frequent climate risks could pose an additional barrier to low-carbon economic development—especially because financing adaptation to, and recovery, from physical climate risks is more difficult for countries with fewer resources and more restricted access to capital.

The transition and adaptation financing gap in low- and lower-middle-income countries is a focus of multiple international forums. Developed economies may have resources to plan and prepare, but the global energy transition cannot successfully happen without developing and emerging economies.