Climate Risk Pricing Approaches for Investment Portfolios in India

Undertaken By: Intellecap Advisory Services Pvt. Ltd. ,    Recent Publication: 2020

Given India’s extremely high sensitivity to climate-risk , it is important to develop advanced frameworks for our local context that can assist in climate risk identification and quantification for investment portfolios and suggest options for appropriate climate risk mitigation. Doing so requires an understanding of the current level of deployment of climate-risk quantification & pricing approaches in India.

This initiative evaluates whether (and how) financial sector stakeholders are currently conducting climate-risk assessments (both physical and transitional) and incorporating them in their financial strategies. This will enable the development of an understanding of their approach to pricing/quantifying climate-risks, and what broad policies and/or financial sector best-practices can be built upon the current risk mitigation strategy landscape, within financial portfolios, to promote clean energy investments.