Canada: Financial sector assessment program: Technical note on climate risks analysis

The focus of these analyses is on developing methodologies and enhancing awareness of climate risks and associated challenges in climate risk assessment. The financial sector in Canada is exposed to both physical and transition climate risks. Floods and wildfires are prominent hazards, and climate change could increase their intensity. As a major fossil fuel producer, Canada is also exposed to transition risks

Some of the recommendations on climate risk analysis according to the report include:

• Strengthen data sharing and collaboration with natural hazard and climate experts.
• Establish standardized public climate data and risk frameworks across provinces (including damage functions)
• Expand physical risk assessment (geographical areas, hazards damages, scenarios, return periods).
• Remove barriers for exchange of confidential information between federal and provincial authorities (PA).
• Enhance data standardization and cooperation between provincial and FA.