IFC launches “ClimaLab” to boost climate risk management in Europe

The International Finance Corporation (IFC) has launched ClimaLab, a pioneering initiative aimed at equipping European financial institutions with the knowledge, tools, and skills to manage climate-related risks.

The initiative is being implemented in partnership with the Netherlands.

Climate-related disasters across Europe caused losses of approximately €650 billion from 1980 to 2022, averaging €15.5 billion annually.

These events have also significantly impacted financial institutions, with global research by the World Bank indicating that non-performing loans ratios are estimated to increase by 0.37 percentage points after severe climate and environmental disaster episodes

ClimaLab, the first programme of its kind by a multilateral development institution, will help banks build capacity for climate resilience, integrate sustainability measures, and align with the Paris Agreement goals.

The official cohort of ClimaLab in Europ will begin in November, with a focus on climate risk management and regulatory compliance.