transition risk
Financial risk from policy, technology, market or reputational shifts as economies decarbonise.
Related terms
- PPALong-term contract to buy electricity from a specific generator, often used to source renewables.
- RECTradable certificate representing the environmental attributes of one MWh of renewable electricity.
- Guarantee of OriginEU electronic certificate certifying that electricity was produced from renewable sources.
- physical riskFinancial risk from acute (storms, floods) or chronic (heat, sea-level rise) climate impacts.