Climate risk assessment needs urgent improvement
The impacts of climate change are already posing a significant risk to biodiversity and human welfare: every community and sector of the economy faces climate-related risks, including physical risk derived from climate variability and change, and transition risk derived from the social and economic transformations required to achieve a climate-resilient and net-zero future.
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Scope, data and transparency are three key constraints that make current CRAs inappropriate to effectively assess the true exposure of society and businesses to climate-related risk. The analysis of these constraints has enabled us to identify four interconnected critical paths for improvement:
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Expand the use of existing and emerging science and technology to enable better use of geospatial data and treatment of uncertainties.
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Develop common principles and standards to enable transparency, comparison and interoperability of diverse and different risk assessments.
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Implement participatory governance practices to enable the effective participation of multiple stakeholders.
- Accelerate capacity building to enable innovation, knowledge generation and diffusion.
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