transition risk

Financial risk from policy, technology, market or reputational shifts as economies decarbonise.

Related terms

PPA
Long-term contract to buy electricity from a specific generator, often used to source renewables.
REC
Tradable certificate representing the environmental attributes of one MWh of renewable electricity.
Guarantee of Origin
EU electronic certificate certifying that electricity was produced from renewable sources.
physical risk
Financial risk from acute (storms, floods) or chronic (heat, sea-level rise) climate impacts.