Finally, I would like to talk about some of the related challenges in financial and economic analysis, with a sincere request to all researchers for further research development. I. Basic Issues Related to Climate Change and Finance I would like to start by considering some basic issues related to climate change and finance. Please refer to Slide 1.
One issue is why finance plays an important role in addressing climate change. Another issue is how climate change affects finance, in particular the financial system. Importance of Finance in Addressing Climate Change One way in which economics approaches climate change issues is through the concept of "externalities."