Climate-related Risks & Energy Finance

23 Pages Posted: 29 Feb 2024

See all articles by Sonia Arsi

Sonia Arsi

Faculty of Economics and Management of Tunis

Hela Mzoughi

University of Tunis Carthage-Carthage Business School

Date Written: May 6, 2023

Abstract

Climate-related risks are recognized as a significant and complex challenge currently facing global economies. Within such a context, our chapter tries to reconcile varying positions on climate-related risks across energy finance. Particularly, we provide a general overview of their various categories and implications for the energy systems. The main findings show that the occurrence of extreme climatic events has clear implications for energy finance. Additionally, pricing climate-related risks is still inconclusive. We recheck the empirical literature that presents the pricing of climate risks crossways asset classes and argue how investors can make portfolios that hedge against climate risk. Then, regulation and climate risks disclosure are reviewed. Next, managing climate-related risks is actually crucial to be addressed. Finally, it sorts out that the COVID-19 pandemic heavily affected the entire climate by reducing CO2 emissions. However, critical attention should be paid to promote the SDGs progress.

Keywords: Climate Risk, Climate Change, Risk Disclosure, Risk Pricing, Energy

JEL Classification: Q54, Q4, G10, G15, O13

Suggested Citation

Arsi, Sonia and Mzoughi, Hela, Climate-related Risks & Energy Finance (May 6, 2023). Available at SSRN: https://ssrn.com/abstract=4738374 or http://dx.doi.org/10.2139/ssrn.4738374

Sonia Arsi (Contact Author)

Faculty of Economics and Management of Tunis ( email )

Tunisia

Hela Mzoughi

University of Tunis Carthage-Carthage Business School ( email )

Avenu Fattouma Bourguiba
Tunis, Tunis 2036
Tunisia

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