Sub-National Development Banks Facing Climate Change Risks: Risk Anticipation and Capacity Building for Sub-National Development Banks
Enhancing understanding and promoting the adoption of CRST practices among sub-national development banks.
About the project
This project aims to strengthen risk anticipation and build the capacity of Sub-national Development Banks (SDBs) to address local climate change risks by integrating transition and physical risks into financial decision-making, while taking into account climate risk perceptions, capacity-building needs of Indonesian SDBs, and best practices in embedding climate risks into financial policies and decisions.
Problems
Adoption of CRST reporting in Indonesia's sub-national development banks is till low.
Approach
Developing learning materials and conducting capacity building program to enhance stakeholders understanding of climate change and CRST practices in sub-national development banks.
Objectives
Strengthen risk anticipation and build institutional capacity within Sub-national Development Banks (SDBs) to integrate climate physical and transition risks into financial decision-making, assess climate risk perceptions and operational readiness across SDBs, and synthesize actionable best practices for climate risk governance
Outputs
• Policy brief on climate risk integration in Sub-national Development Banks (SDBs)
• Best practice study in integrating climate risks into SDBs' financial decisions
• CRMS learning modules, web-based e-learning application, and holding capacity-building sessions delivered to targeted SDBs
• Curated workshop conducted to strengthen Climate Risk Stress Testing (CRST) in SDBs
• Develop general and technical guidelines on CRMS for the insurance sector for OJK