Jamaica’s sovereign rating holds post-hurricane thanks to its multi-layered disaster financing framework, the Reserve Bank of India defers climate reporting despite mounting climate costs, and the UK’s Financial Conduct Authority opens consultation on new disclosure rules.
Jamaica’s sovereign rating holds thanks to disaster preparedness
In an extraordinary testament to the island nation’s disaster preparedness, Moody’s upgraded Jamaica’s sovereign rating to Ba3 from B1 in the aftermath of Category 5 Hurricane Melissa. Standard & Poor’s and Fitch affirmed ratings with stable outlooks.
Speaking at the Jamaica stock exchange’s regional investments and capital markets conference, Prime Minister Andrew Holness partly attributed the upgraded rating to the country’s multi-layered disaster financing framework. Through this framework, the government was able to mobilise US$662mn in immediate liquidity – including a US$150mn catastrophe bond, US$9mn from the Caribbean Catastrophe Risk Insurance Facility, and various contingent credit lines. In total, Jamaica secured US$6.7bn for reconstruction— including US$3.6bn in sovereign financing and US$2.4bn for private capital mobilisation.
Bank of Jamaica senior deputy governor Wayne Robinson told delegates that central banks are operating in an environment of increasing uncertainty. He described “seismic shifts” in trade flows, demographics, climate, and technology happening simultaneously. He also noted that for supply-side shocks created by natural disasters such as hurricanes, “there’s not much interest rates can do about that.”
The focus shifts to “preventing second-round effects—ensuring that temporary price spikes don’t become entrenched inflation”.
India defers climate disclosure rules for banks
The Reserve Bank of India (RBI) put its plan to mandate climate risk disclosures for lenders on hold, Reuters reports. Three sources told the outlet that while “the final guidelines are ready,” the RBI concluded that implementation is “not a priority at this point of time.”
The proposed rules have been under discussion since 2022, and would have required banks to calculate borrower emissions and disclose climate risks by asset class from fiscal year 2027 on a voluntary basis.
One source cited concerns that the requirements could prove “onerous and costly for corporates” as many are not required to disclose climate-related risks on business and supply chains. Another pointed to a regulatory mismatch. The RBI rules cover portfolio-level disclosures, which would go much further than the Securities and Exchange Board of India’s rules for listed companies.
This delay takes place against the backdrop of the nation’s growing climate exposure. India ranks ninth globally on the Germanwatch Global Climate Risk Index 2026, experiencing 430 extreme weather events between 1995 and 2024 that cost around $US170bn.
FCA proposes phased approach for UK sustainability standards
The Financial Conduct Authority (FCA) plans to update its climate disclosures regime. The proposed rules would replace the current Task Force on Climate-related Financial Disclosures requirements with the UK Sustainability Reporting Standards, which are aligned with IFRS S1 and IFRS S2.
And while Scope 3 greenhouse gas emissions reporting will be introduced in 2028, it will be on a “comply-or-explain” basis, meaning that companies can choose not to disclose but must explain why.
Transition plans will not be mandatory under the new rules. The FCA stated that “mandating that companies have transition plans is a matter for government,” instead proposing that firms disclose whether they have published a transition plan and where it can be found, or state why not.
The regulator is currently holding a consultation on its proposals that closes 20 March, with final rules taking effect 1 January 2027.
UN pushes nature risk guidance forward
The UN Environment Programme Finance Initiative (UNEP FI) has announced plans to launch a “Nature Journey” roadmap later this year. The document will cover nature considerations within governance, risk management, strategy, and decision-making, alongside alignment with the Taskforce on Nature-related Financial Disclosures (TNFD) and the Global Biodiversity Framework.
Highlighting work Lloyds Bank is doing to explore nature bond structures with its clients, the UN also noted that biodiversity finance is increasingly moving into the mainstream, particularly via blue and sustainability-linked bonds.
Separately, the UNEP FI released guidance on nature-based risk assessment for financial institutions, co-developed with the Equator Principles. The document recommends that banks involve project-related financing teams early in the assessment process to leverage “high-quality, location-specific, nature-related information sources.”
Meanwhile, the International Sustainability Standards Board voted unanimously last month to develop nature-related disclosure requirements anchored within existing IFRS S1 and S2 frameworks
Research
Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era
United Nations University Institute for Water, Environment and Health
This flagship report introduces the concept of “water bankruptcy” as a condition defined by insolvency—withdrawing water beyond renewable inflows—and irreversibility of damage to natural capital. Nearly three-quarters of the world’s population live in water-insecure countries, whilst drought costs US$307bn annually. The report calls for financial policymakers to recognise persistent water shortages as systemic risks requiring structured recovery plans rather than temporary crisis responses.
Two Lenses on Climate Risk: A Dual Macroeconomic Reading of the NGFS Short-Term Scenarios
Network for Greening the Financial System
The NGFS commissioned a parallel modelling exercise to cross-check its May 2025 short-term climate scenarios, providing quality assurance for central bank risk assessments. Key divergences emerged around expectations mechanisms, inflation dynamics and monetary policy responses across transition and physical risk scenarios. The comparison underscores significant model uncertainty in near-term climate scenario analysis, highlighting the value of multi-model validation for supervisory stress-testing frameworks.
This page was last updated February 11, 2026