Methodological Framework For Forward-Looking Physical And Transition Risk Assessment

International Monetary Fund (IMF)

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Abstract: This document outlines an IMF-developed framework for assessing climate-related physical and transition risks by linking hazards, vulnerability, and exposure with climate scenarios. The framework supports the G20 Data Gaps Initiative and includes geospatial indicators and open datasets. A Kenya case study maps climate risk to residential properties, illustrating the application of digital twin models and modular assessment tools. These tools enhance financial stability analysis and policy interventions, enabling countries to build localized, forward-looking risk profiles for insurance, infrastructure, and regulatory resilience.