The French energy transition law has recently introduced a mandatory climate-stress test for financial institutions. This regulatory evolution is likely to spread to other countries, especially following the recommendations of the Financial Stability Board task force on climate risks. However, no methodological reference framework is available yet. We have launched academic work (PhD) in collaboration with AFD (French Development Bank) to jointly develop a first implementation of a climate stress test of its balance sheet.
- Assess the climate resilience of IFIs balance sheet.
- Raise awareness and build capacity within financial institutions financed by IFIs through interactive workshops and methodology transfer.