Cross-border risks of a global economy in mid-transition

This paper analyzes the cross-border risks that could result from a decarbonization of the world economy. We develop a typology of cross-border risks and their respective channels. Our qualitative and quantitative scenario analysis suggests that the mid-transition - a period during which fossil-fuel and low-carbon energy systems co-exist and transform at a rapid pace - could have profound stability and resilience implications for global trade and the international financial system