Climate risks and opportunities
India is one of the most vulnerable countries to the impacts of climate change, ranking 7th out of 181 in the Global Climate Risk Index 2021. More than 75% of Indian districts are hotspots for extreme climate events. It is clear that climate change poses a significant threat to India, with one study suggesting that it could shave off 2.5%-4.5% of India’s GDP annually if not tackled timely. Given the above context, this paper aims to look at how climate risks impact financial markets – banking, capital markets, and insurance – and the opportunities this presents for investments and product innovation.