This paper analyzes the cross-border risks that could result from a decarbonization of the world economy. It develops a typology of cross-border risks and their respective channels. The qualitative and quantitative scenario analysis suggests that the mid-transition – a period during which fossil-fuel and low-carbon energy systems co-exist and transform at a rapid pace – could have profound stability and resilience implications for global trade and the international financial system.
Cross-Border Risks of a Global Economy in Mid-Transition_Paper
Cross-Border Risks of a Global Economy in Mid-Transition_Slides