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Climate Risks in the Transport Sector – United Nations Environment – ​​Finance Initiative

The transport sector is responsible for this 37% of total CO2 emissions and global passenger transport demand is expected to almost triple by 2050. The expected growth in demand, coupled with an acceleration of the shift to a low-carbon economy, will pose significant challenges for the sector and the businesses and communities dependent on it.

While the shift to a sustainable, net-zero future is critical, closely managing the physical and transition climate risks and opportunities associated with the transportation sector will be critical to a smooth and just transition. Through case studies and risk management recommendations for each risk identified, this brief aims to assist financial institutions in effectively managing both their own risks associated with their financing activities in the transportation sector and those of their clients, with the aim of transition to a sustainable financial and economic system. By helping companies mitigate risks and reduce their financed emissions, this assignment can also support financial institutions in meeting their carbon neutral obligations.

This letter is part of a series covering the following key economic sectors and associated physical and transition climate risks. All these resources are part of the UNEP FI Risk center supporting members take an integrated approach to sustainability risks.