Last modified: 2017-03-13
Nonfinancial Risks and Financial Opportunities in Combating Climate Change
The problem of global warming in recent decades became especially important and is reflected in a number of international agreements aimed at intensifying the efforts to limit the rate of global warming below 2 degrees Celsius.Ukraine actively involved in the process of combating climate change by reducing the greenhouse gas emissions (under the Kyoto Protocol to the UN Framework Convention on Climate Change and Paris Climate Agreement). As a result, our country has been using the possibility of selling ERUs (Emission Reduction Units) as a part of the Joint Implementation mechanism (Joint Implementation - JI) and certificates AAU (Assigned Amount Units) to attract "green investments". The aim of the paper is to show how nonfinancial risks are influencing the global financial system and what kind of changes do the Ukraine need to undertake to attract resources from the financial market and fulfil our obligations under the Paris Climate Agreement and Association agreement with the EU.
Climate Change; Non-financial risks; Financial Market; ESG Principles; Corporate Sustainability; Corporate Social Responsibility
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