Delivering a long-term transition risk assessment for energy projects

Energy projects impact the long-term energy mix of host countries. A key objective for export credit agencies (ECAs) is to ensure that the energy projects they support comply with the requirements of, for example, the Paris Agreement, which requires in-depth knowledge of country-specific commitments and scenarios.

Risk mitigation is a challenge, as the client must assess whether the projects are economically viable based on carbon shadow prices. In addition, gathering and analysing the data from ground-up is difficult and time-consuming.
 

Swiss Re’s expertise on climate and sustainability for the insurance industry was combined with our expertise in quantitative analysis to deliver analytics consulting services to an EMEA-based ECA.

The services include the integration of large global data sources on climate, energy and economic trends and can be enriched with proprietary CO₂ emission models, also leveraged for managing our own business.

A detailed report was provided for each assessed project as well as the corresponding market, looking into the CO₂ emission profile of the project and alignment with a country’s emission targets.