International Capital Markets as a Means of Financing Climate Action: Smooth Sailing or Stormy Waters? (2025)
Report
Dryden, A., & Volz, U. (2025). International Capital Markets as a Means of Financing Climate Action: Smooth Sailing or Stormy Waters?

While capital markets hold great potential for mobilising the vast sums required for climate mitigation and adaptation, their volatility presents significant risks to emerging and developing economies (EMDEs). This study examines the role that intern... Read More about International Capital Markets as a Means of Financing Climate Action: Smooth Sailing or Stormy Waters?.

Mobilising A Trillion Dollars for Climate Mitigation in Poor Countries: A Proposal for a New Finance Facility against Climate Change (2024)
Report
Kraemer, M., & Volz, U. (2024). Mobilising A Trillion Dollars for Climate Mitigation in Poor Countries: A Proposal for a New Finance Facility against Climate Change

Many developing countries are struggling under a high sovereign debt burden and rising interest rates that leave little fiscal space to meet their Nationally Determined Contributions under the Paris Climate Accord. To enable these countries to invest... Read More about Mobilising A Trillion Dollars for Climate Mitigation in Poor Countries: A Proposal for a New Finance Facility against Climate Change.

The Impact of Climate Vulnerability on Firms’ Cost of Capital and Access to Finance (2019)
Preprint / Working Paper
Kling, G., Volz, U., Murinde, V., & Ayas, S. The Impact of Climate Vulnerability on Firms’ Cost of Capital and Access to Finance. London

This paper investigates the effect of climate-related risk on firms’ cost of capital and access to finance. Building on recent findings that climate vulnerability significantly increases sovereign cost of debt, we posit a ‘pass-through effect’ whereb... Read More about The Impact of Climate Vulnerability on Firms’ Cost of Capital and Access to Finance.