Water Risk and Financial Stability: An Our Future Water Insight on Central Banks, Climate Resilience

Water Risk and Financial Stability: An Our Future Water Insight on Central Banks, Climate Resilience, and Sustainable Finance explores how water scarcity, pollution, and infrastructure failures have become systemic financial risks that threaten economic stability. As climate change accelerates, this book addresses the urgent need for central banks and financial regulators to integrate water risk into their supervisory and policy frameworks to safeguard long-term financial resilience.

• Understand how climate change and water scarcity contribute to systemic financial risks across agriculture, energy, and industrial sectors
• Explore the evolving role of central banks in addressing water-related risks to macroeconomic stability
• Gain insight into water security as a material financial risk through the lens of credit, market, and insurance exposure
• Learn how financial regulators can integrate water risks into scenario analysis, stress testing, and prudential oversight
• Familiarize yourself with global standards like the Network for Greening the Financial System (NGFS), TCFD, and TNFD for managing water-related financial disclosures
• See how green bonds and sustainable finance instruments support water resilience and reduce exposure to hydrological shocks
• Understand the importance of stakeholder coordination, fiscal planning, and urban development in addressing water risks through financial system reforms
• Explore how sovereign credit ratings and debt sustainability frameworks are increasingly shaped by water availability and water governance performance

This book is an essential resource for professionals working in climate finance, monetary policy, sustainable investing, and environmental governance. By focusing on water security, climate change, and sustainable finance, it equips decision-makers with the insights needed to future-proof financial systems and align them with global resilience and sustainability goals.