Project Finance Climate Change Risk Assessment

From Open Risk Manual


Project Finance Climate Change Risk Assessment are the specific requirements stipulated by the Equator Principles, in particular Equator Principle 10: Reporting and Transparency in the context of a Project and Project Finance.

The Climate Change Risk Assessment should address the following questions at a high level:

  • What are the current and anticipated climate risks (transition and/or physical as defined by the TCFD) of the Project’s operations?
  • Does the client have plans, processes, policies and systems in place to manage these risks? i.e. to mitigate, transfer, accept or control.

This assessment should also consider the Project’s compatibility with the host country’s national climate commitments, as appropriate.