Policy and Economics
Judicial Responses to Climate Change View Digital Media
Paper Presentation in a Themed Session Usha Tandon
The matters arising out of the issues relating to climate change are on the rise world-over, including India. The Indian Judiciary and Green Tribunal are encountering an increasing number of matters that are induced by climate change, such as melting of glaciers, displacement and migration due to climate change, addressing loss and damage caused by climate change etc. In the absence of a specific law on climate change, the adjudication of climate matters become uncertain and undetermined. In this context, this paper explores how the Indian courts are applying the principles of international law and the domestic environmental law on air pollution, water pollution etc. for deciding the climate change issues before them. It highlights various principles of environmental law that are being applied by the courts in fixing the liability for compensation; giving relief to the climate victims and for restoring the damaged environment. To meet the demand of climate justice, this paper argues for the enactment of a dedicated law on climate change.
Sustainable Financing, Climate Change Risks, and Bank Stability in Kenya View Digital Media
Paper Presentation in a Themed Session Maureen Odongo, Peter Wamalwa
This study analyses the impact of climate risk indicators on bank stability in Kenya based on descriptive and quantitative approaches on quarterly data covering thirty-five banks over the period 2009 to 2021. The analysis reveals a distinct warming trend, variable rainfall pattern and an increasing trend in greenhouse gas emissions especially in the agriculture and transport sectors. Banks’ climate financing for sustainable projects remains low. Empirical findings using dynamic panel estimation reveals adverse impact of temperature changes and rainfall variability on bank stability and credit risk arising from non-performing loans. The stress testing results reveal vulnerability of the banking sector to climate change as the probability of defaulting increases in moderate, severe, and extreme temperature changes. The results affirm banks’ important role in managing financial stability risks while providing sustainable climate financing and the need to strengthen synergies between private and public sustainable financing for target priority sectors.
Climate Change and Inflation in Eastern and Southern Africa View Digital Media
Paper Presentation in a Themed Session Anne Kamau, Maureen Odongo
This study analyzes the dynamics of key climate change indicators and their implications on food prices in Eastern and Southern African Countries. The study uses descriptive and quantitative analysis of monthly data covering ten countries over the period 2001 to 2020. The descriptive analysis reveals that the sampled countries have experienced various climate change events with increasing intensity in the last two decades. Additionally, three of the countries in the sample ranked in the list of countries most affected by extreme weather events in 2019 are at risk of either frequent events or rare but extraordinary catastrophes. The quantitative analysis showed that supply shocks measured using rainfall amounts and imported food price inflation are the main determinants of food inflation, whereas oil prices, subsidies, and imported inflation are the key determinants of overall inflation. At a macro level, the analysis shows that all countries have various climate change policy initiatives in place but are still vulnerable to climate change risks. This implies a need for sector-specific climate change policy options that are most effective. In addition, the adoption of renewable sources of power such as wind and solar and appropriate irrigation practices is important.
