Stepping Up to Address Climate-Related Financial Risk
The Climate-related Financial and Macroeconomic Risk Initaitve brings together economists, financial researchers, industry professionals, and policymakers to develop forward-looking analysis of how physical climate risks and energy transition dynamics impact financial markets.
Climate Change is Impacting Financial Markets
Climate-related risks increasingly shape everyday financial decisions—from rising insurance costs and shifting housing values in high-risk areas to the economic effects of extreme weather. Those same risks are also showing up in financial markets and the broader economy, influencing asset pricing, market stability, and long-term risk management.
As climate-related risks affect households and financial markets, policymakers and financial leaders often find themselves having to make decisions without a full understanding of the broader macroeconomic consequences. To address this challenge, Resources for the Future (RFF) and Harvard University have launched the Climate-related Financial and Macroeconomic Risk Initiative (CFMRI).
Our initiative brings together economists, financial researchers, industry professionals, and policymakers to develop forward-looking analysis of how physical climate risks and energy transition dynamics move through credit and insurance markets, affect macroeconomic stability, and interact with fiscal and monetary policy.
“This Salata-RFF Initiative will deliver the rigorous analysis that financial authorities, companies, and communities need to manage climate-related macroeconomic risks.”
— Janet Yellen, former US Secretary of the Treasury
This work draws on RFF’s core strength: applying objective economic research to complex policy discussions. Your support makes it possible for RFF to advance initiatives like the CFMRI—work that helps bridge the gap between academic insight and real-world decisionmaking and provides the evidence needed to strengthen economic resilience, financial stability, and household well-being.
As the year comes to a close, we invite you to support RFF’s work at a moment when objective economic analysis feels more essential than ever. Your generosity will help ensure that leaders across government and the private sector have credible, independent evidence to guide climate and energy decisions in the years ahead.
