Mongolia is highly vulnerable to climate change due to its geographical position, landscape, and continental climate. It ranks 22nd out of 180 countries in the Global Climate Risk Index 2019. Climate scenario analysis is an important tool to manage future long-term risks, especially for financial sector risks. The Bank of Mongolia and ESCAP are developing a report that examines climate-related risks on key sectors, including Power/Energy, Agriculture, Industry and Processes, and Mining, in the Mongolian context over the next three decades. The report presents best practices on climate scenario analysis and assessment of climate change-related financial risks.
The workshop will present the impact of climate risks on the financial sector in Mongolia over the next three decades. It will cover physical and transition risks, macroeconomic and microeconomic transmission of climate risks to the financial sector, and strategies for climate scenario analysis. The presentation will include the details of climate scenarios developed by the Network for Greening the Financial System (NGFS) and available forward-looking data, its significance, and application to climate risk management in the financial sector. Feedback on the research findings will also be welcomed from stakeholders in the financial sector, specialized agencies, development partners, and civil society.
