SOAS University of London

Department of Economics

Climate Change and the Cost of Capital in Developing Countries (UN Environment, 2018)

This collaborative research project with Imperial College Business School has been commissioned by UN Environment. It has received financial support from the MAVA Foundation.

The research investigates the relationship between climate vulnerability, sovereign credit profiles, and the cost of capital in developing countries. 

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Climate Change and the Cost of Capital in Developing Countries

Read the full report on Climate Change and the Cost of Capital in Developing Countries.

Read the executive summary of the report. The report summary is available in the following languages:

Find out more details in the technical background paper: Gerhard Kling, Yuen Lo, Victor Murinde and Ulrich Volz, ‘Climate Vulnerability and the Cost of Debt,’ mimeo, London: SOAS University of London, 2018.

A report launch event with a presentation of the main research findings, a keynote and panel discussion took place on 2 July.

The report was also presented at the African Development Bank, the Asian Development Bank, and the World Bank’s Understanding Risk Finance Pacific Forum in Port Vila, Vanuatu.

The research findings have been widely reported on in the media, including coverage by the Financial Times, Reuters and Forbes.  See also an opinion piece by Ulrich Volz and Bob Buhr for IPE magazine: Climate change mitigation is a good investment.

The report’s findings were referred to in a Ministerial Communique after a meeting of the Ministers of Finance of the Vulnerable Twenty Group (V20) at the Annual Meetings of the World Bank Group and International Monetary Fund in Nusa Dua, Bali, in October 2018. The V20 Finance Ministers further discussed the report’s findings at the Spring Meetings of the World Bank Group and International Monetary Fund in April 2019 and announced in a press release new financial instruments in collaboration with international partners to ensure continued global economic growth in the face of increasing threats from climate change.

For questions please contact Ulrich Volz.