Climate change is increasingly seen as a risk for financial stability as a whole. Climate-related risks may materialise and impact on the value of assets or on financial stability as a physical risk through gradual changes in climate or adverse weather events such as storms or floods; and a transition risk through adjustments to climate change such as carbon pricing, product regulations or technological innovations. Climate change has been largely under-examined in the global deposit insurance community. A recent conference held by the Perbadanan Insurans Deposit Malaysia and Korea Deposit Insurance Corporation titled A Race Against Time – Climate-Related Risks and Financial Stability Implications offered a forum to the deposit insurance community to engage in productive dialogue on the topic. This has signalled a potential shift in focus regarding the topic of climate change. Such a trend has also been observed at the Federal Deposit Insurance Corporation, which recently identified “... a compelling obligation to engage with climate change as a financial stability threat”. It is acknowledged that the implications of climate change are subject to a great deal of uncertainty. There are also a considerable number of external factors at play that are either partially or completely outside the control of deposit insurers. This imposes limitations on potential policy approaches and raises broader questions about the deposit insurer’s role in responding to this issue. However, given the breath and scope of climate-related impacts on financial stability and on individual institutes, deposit insurers may increasingly treat climate change as a matter of strategic importance. IDIC as part of global DIC community aims to bring forward the topic of climate change and green economy through a one-day seminar. This seminar, entitled "Climate Change, Decarbonization, Sustainability, and Green Economy" will cover topics of policy-making in relation to fight against climate change and the implications of climate change and green initiatives to Financial Industry. For further information and registration, please check www.events.lps.go.id.
Indonesian G20 Side Events