Financial Development, Institutions, and Markets in the Era of Climate Change

In the era of climate change and global warming, global financial markets play important roles in allocating capital investments with net-zero targets. Hence, the development of financial markets must play promising roles in achieving an orderly transition to low-carbon economies as well as the multidimensional complex financial development of both financial institutions and markets worldwide. Major factors of climate change performance including climate policies, sustainable energy transition, and emissions shed light on the heterogeneity of financial development in the energy-environment nexus in the era of climate change with novel evidence around the world. Such interrelations between climate-related risks, complex financial and macroeconomic perspectives for sustainable transitions have been urgent and worth serious investigation for proper policy implications across countries and regions.

This Research Topic aims to address the problems of how financial development would potentially help deal with climate risks with empirical evidence on the multidimensional complex functionality and recent developments of financial markets and institutions. To achieve this, papers selected for this research topic will focus on the determinants of climate change performance including but not limited to:

1) Climate policies
2) Sustainable energy
3) Environmental sustainability angles focusing on (but not limited to) the central roles of broad-based financial
development, institutions, and markets

The editorial board encourages contributing authors to contact the Topic Lead Editor for the best suitability of potential contributions to the topic.

Climate change impacts have arguably become one of the ultimate challenges to our global economy; through the promising functionality of financial institutions and markets to deal with climate-related risks for green transitions, this topic calls for research papers to investigate the following problems:

- Climate risks and financial development
- Climate risks and financial markets
- Climate risks and financial institutions
- Climate risks and green growth
- Climate risks and sustainable energy
- Climate risks and economic policies
- Climate risks and energy policies
- Climate risks and environmental policies
- Climate risks and sustainable finance
- Climate Risks and ESG issues
- Climate risks and corporate policies
- Climate risks and corporate governance