Climate Transition Pathways and Credit Risks for Firms in ASEAN+3

This note examines how different climate transition pathways affect firm-level credit risk across ASEAN+3 economies, using 12-month probabilities of default as a measure of credit risk. It compares outcomes under Nationally Determined Contributions and net-zero 2050 scenarios against current policy baselines, revealing sector-specific and country-specific variations. The findings show that transition risk is highly heterogeneous, […]