Presentation- Fifth meeting of the Task Force on Climate Change Adaptation - Jolien Noels & Raphaël Jachnik

1. ASSESSING CLIMATE-RESILIENT
FINANCE AND INVESTMENT
A pilot study
Jolien Noels and Raphaël Jachnik
TFCCA 5th meeting 28 November 2022

2. Project motivation
Economic actors and investors have a direct incentive to
manage the increasing physical risks from climate
change
Article 2.1c of the Paris Agreement calls for “making finance
flows consistent with both a pathway towards low greenhouse
gas emissions and climate-resilient development”
Research gaps on metrics and methods to assess
climate-resilient finance: lack of consistent methods
and data
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3. Project aim
Explore possible methods and data that
could be used for assessing progress
towards the resilience-related provision
of Article 2.1c
https://one.oecd.org/document/ENV/
EPOC/WPCID(2022)17/en/pdf 3
28/11/2022 TFCCA 5th meeting

4. Collaboration within the Environment Directorate of the OECD:
– Research Collaborative on Tracking Finance for Climate Action
• data and approaches for measuring progress towards Article 2.1c of the
Paris Agreement
– Task Force on Climate Change Adaptation (TFCCA) Secretariat
• Adaptation and resilience policy
– Environmental Performance and Information (EPI) division
• Indicator and database development and analysis of climate hazards
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Internal collaboration and output
28/11/2022 TFCCA 5th meeting

5. Project scope
Analyse both real-economy investments by companies
and financial equity holdings in listed companies
– Economic actors and investors have a direct incentive to manage their
exposure to climate risks
– To safeguard their assets, remain operational and maintain competitiveness
Investigate resilience alignment based on a range of
climate hazards
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6. Project scope
Focus mainly on European countries
Reflections on other geographical contexts through
additional case studies
Focus on manufacturing sector
– High and increasing exposure to climate hazards
– Large potential for private adaptation finance as an extension of current
natural hazard risk management
– Risks to productive capital-intensive facilities that are location-dependent
– Explore differences in vulnerability of different manufacturing subsectors
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7. Project approach and data
Geospatial
distributions of
climate hazards
Facility data on
climate exposure
Risks to company
investments and
financial holdings
Proxies for company
resilience alignment
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Current and modelled
future climate hazards
exposure
Locations of productive
facilities
Ownership of facilities,
real-economy
investments, financial
stock
Progress towards
resilience: adaptation
policies and plans
28/11/2022 TFCCA 5th meeting

8. • What are your views and suggestions on the intended analytical steps and
scope for the pilot study?
– Do you agree with the approach taken?
– Are there any other data sources you would to see considered?
• Does your country have national-level adaptation or resilience policies or
benchmarks relevant for the analysis?
• Would your country be interested in exploring a case study?
Please provide your written comments by Friday 16 December
Questions for delegates
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9. Thank you
Raphael.JACHNIK@oecd.org
Jolien.NOELS@oecd.org