Climate ‘green swan’ events: Financial sector braces for shocks : Dr. Rajalaxmi Kamath

In an article for Hindustan Times, Dr. Rajalaxmi Kamath, Public Policy area, IIMB, explains why India’s financial system must adapt to a new kind of crisis, green swan events. These climate-driven disruptions are no longer rare or hypothetical; they’re systemic, recurring, and unpredictable. With rising climate-related losses, traditional risk models and financial safeguards fall short. Drawing from India’s vulnerabilities and Bangladesh’s policy innovations, the article lays out a roadmap for climate-resilient financial inclusion, calling for green bonds, stress tests, and coordinated regulation to safeguard the most affected populations.