Understanding the Inevitable Policy Response and Climate Transition Scenarios: A Comprehensive Overview
The Inevitable Policy Response (IPR) is making waves in the world of climate transition forecasting, providing institutional investors with valuable insights into the risks and opportunities associated with policy responses to climate change. Commissioned by the PRI, IPR is focused on preparing investors for the acceleration of climate policies, particularly driven by the Paris Agreement Global Stocktake/Ratchet cycles.
IPR’s latest forecast scenarios for 2023 are now available, offering a detailed assessment of the potential policy trajectories in the short and long term. Unlike other scenarios, IPR’s forecasts are grounded in transparent views on major policy areas across all major countries and regions, providing financial institutions with a realistic view of the transition over time.
One key aspect that sets IPR apart is its focus on energy systems and land use, including detailed analysis of food systems, bioenergy development, and nature-based solutions. This comprehensive approach allows investors to assess risks and opportunities across major sectors impacted by climate transition, as well as make informed decisions about climate risk management and net zero alignment.
By providing both the Forecast Policy Scenario (FPS) and the Required Policy Scenario (RPS), IPR enables financial institutions to assess a forecast scenario for risk and return, as well as a full 1.5-degree net zero pathway that can be used as a stress test. This valuable information equips investors with the tools they need to navigate the financial, market, and real economy uncertainties of climate transition.
In a world where climate change is an ever-present challenge, the insights provided by IPR are crucial for investors looking to align their portfolios with a sustainable future. With IPR’s transparent and detailed scenarios, financial institutions can make informed decisions that not only benefit their bottom line but also contribute to a more sustainable world.