The US Congress adopted the climate bill

The Inflation Reduction Act was approved on August 7th 2022, becoming the most significant climate bill to ever make it through U.S Congress. The bill presents huge investment opportunities for financial institutions as it aims to decarbonize and transition major parts of the U.S. economy.

Although this bill is a significant win for climate finance in the United States, it also presents much work to be done on the financial risk side of things, with transition risks posing an increasing threat. If investments are done without adequate risk management, economic instability is inevitable. As financial institutions accelerate their green transition following the approval of the Inflation Reduction Act, consideration for climate financial risk has never been more important.

Green RWA’s free, open source Climate Extended Risk Model (CERM) is a useful tool for financial institutions taking part in the green transition wanting to know where risks lie within their portfolios. To learn more about our free, open source, risk models, take a look at the attached documents.

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