Pricing Climate Resilience: A Missing Dimension in Sustainable Investment Frameworks

Currently, the chapter is questioning the inter-relationships among the climate-related financial flows, sustainability-focused investment, and macro-economic resilience. The existing climate investment systems have a strong focus on mitigation and short-term returns and thus create a culture of under-pricing and underinvestment in climate resilience. The ever-rising pace of climate change is amplifying the economic susceptibility levels in the Global South, and the analysis of climate-sustainable investment is becoming essential in strengthening macroeconomic capacity. The chapter follows a conceptual approach based on the synthesis of more recent climate finance and resilience literature, provides practical pieces of advice to investors and policymakers, but outlines relevant research emergent frontiers to be pursued in the future toward pricing climate resilience.