Climate change and residential real estate: what are the risks for the banking sector?

Bulletin No. 248, article 4. French residential real estate is already suffering the consequences of weather phenomena, particularly through the direct impact of natural disasters. This vulnerability is set to increase as climate change becomes more pronounced. Residential real estate is also a key sector in strategies for the transition to a low-carbon economy, which, if poorly anticipated or implemented in a sub-optimal way, can be a source of shocks for households or real estate values.
Despite the exposure of residential real estate to climate risks, the transmission of these ...