{
  "title": "The ENV-FIBA Model for Climate Risk Analysis: Framework, Model Details and Guide",
  "publication": "IMF Working Papers, November 7, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2025/11/06/the-env-fiba-model-for-climate-risk-analysis-framework-model-details-and-guide-571481",
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  "summary": "We present the ENV-FIBA macro-micro model framework that can be used to analyze the climate-macro-financial consequences of climate scenarios and related policy counterfactuals.",
  "sections": [
    {
      "heading": "Overview and purpose",
      "content": "- Presents the ENV-FIBA macro-micro model framework to analyze the climate-macro-financial consequences of climate scenarios and related policy counterfactuals.\n- Model structure:\n  - Multi-country Computable General Equilibrium (CGE) core.\n  - Connected micro simulation module for an economy’s individual nonfinancial firms and banks.\n- Illustration: model application for Japan."
    },
    {
      "heading": "Scenario anchoring and policy levers",
      "content": "- Climate-macro-financial scenario simulations are anchored in:\n  - Future temperature pathways.\n  - Emission pathways.\n- Policy assumptions included in simulations:\n  - Carbon taxation.\n  - Fiscal revenue recycling and reinvestment.\n  - Optional carbon border adjustment mechanisms.\n  - Other policy counterfactuals as specified in scenario design."
    },
    {
      "heading": "Key findings and emphasized modeling principles",
      "content": "- Joint modeling:\n  - Physical and transition risk effects should be modeled jointly to a maximal extent, given their intertwined nature.\n- Dynamic bank balance sheets:\n  - It is important to consider bank balance sheets that are dynamic (not static) to capture differential growth of emission-intensive industries that may shrink versus industries that may flourish.\n- Primary impacts on bank solvency:\n  - Dynamically evolving lending has primary impacts on bank solvency via interest income.\n  - Quantitatively often smaller impacts occur through loan losses from borrower defaults."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Title: The ENV-FIBA Model for Climate Risk Analysis: Framework, Model Details and Guide\n- Authors: Marco Gross, Jinhyuk Yoo, Hugo Rojas-Romagosa, Salim Dehmej, Zulma Barrail, Hannah Sheldon\n- Publication date: November 7, 2025\n- Series: Working Paper No. 2025/230\n- Volume: 2025\n- Issue: 230\n- Pages: 42\n- DOI: https://doi.org/10.5089/9798229028844.001\n- ISBN: 9798229028844\n- ISSN: 1018-5941\n- Subject: Climate change; Environment; Financial statements; Greenhouse gas emissions; Public financial management (PFM)\n- Keywords: Caribbean; Central America; CGE modeling; Climate change; Climate risk analysis; climate scenario; ENV-FIBA model; Financial statements; Global; Greenhouse gas emissions; IMF working papers; micro-macro simulations; model framework; South America\n\nIMF Working Paper No. 2025/230\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2025/11/06/the-env-fiba-model-for-climate-risk-analysis-framework-model-details-and-guide-571481"
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    "Authors: Marco Gross, Jinhyuk Yoo, Hugo Rojas-Romagosa, Salim Dehmej, Zulma Barrail, Hannah Sheldon",
    "Published: November 7, 2025",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798229028844.001",
    "Presents the ENV-FIBA macro-micro model framework to analyze the climate-macro-financial consequences of climate scenarios and related policy counterfactuals.",
    "Model structure:",
    "Illustration: model application for Japan.",
    "Climate-macro-financial scenario simulations are anchored in:",
    "Policy assumptions included in simulations:",
    "Joint modeling:",
    "Dynamic bank balance sheets:",
    "Primary impacts on bank solvency:",
    "Title: The ENV-FIBA Model for Climate Risk Analysis: Framework, Model Details and Guide",
    "Authors: Marco Gross, Jinhyuk Yoo, Hugo Rojas-Romagosa, Salim Dehmej, Zulma Barrail, Hannah Sheldon",
    "Publication date: November 7, 2025",
    "Series: Working Paper No. 2025/230",
    "Volume: 2025",
    "Issue: 230",
    "Pages: 42",
    "DOI: https://doi.org/10.5089/9798229028844.001",
    "ISBN: 9798229028844",
    "ISSN: 1018-5941",
    "Subject: Climate change; Environment; Financial statements; Greenhouse gas emissions; Public financial management (PFM)",
    "Keywords: Caribbean; Central America; CGE modeling; Climate change; Climate risk analysis; climate scenario; ENV-FIBA model; Financial statements; Global; Greenhouse gas emissions; IMF working papers; micro-macro simulations; model framework; South America",
    "**Working Paper**"
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