Over the past decade, discussions on extreme weather events have remained top priority in the international community and research efforts are gradually emerging to provide technical inputs into the design of adaptation and mitigation strategies. Consequently, there is a growing body of literature focusing on related issues ranging from developing indices to measure climate risks (see for example, Eckstein et al., 2021; Faccini et al., 2021); pricing of climate risks in stock valuation (see Zhang et al., 2019; Faccini et al., 2021; Akpa et al., 2022; Lasisi et al., 2022; Oloko et al., 2022) to the utility gains of observing climate risks (see Lasisi et al., 2022). Thus, this Special Issue (SI) further provides an avenue for academics and technically-minded professionals to contribute to this evolving literature on climate risks. More specifically, the connection between climate risks and the emerging markets constitutes the fulcrum of the SI in order to align it with the philosophy of EMFT which aims to be a premier journal on issues relating to emerging markets. In addition, the pace of development in emerging markets in recent times with increased level of economic activities suggests their greater potentials to impact climate change in a significant manner than their developing counterparts. Furthermore, the adverse effect of climate risk has necessitated calls for markets and businesses such as energy and mining, among others that deal primarily in carbon emission to align to net zero emission and develop a sustainable business model that conform with the green objective in order to mitigate against climate-induced risks. While these calls have received greater attention among the developed countries given their various policy responses geared towards domesticating climate change policy, very little is known about the emerging markets in this regard. The SI therefore welcomes papers that provide empirical insights into the various dimensions of the connection between climate risks and the emerging markets with special interests in the following sub-themes:
- Pricing of climate risks in the valuation of emerging markets stocks
- Evaluating the predictability of climate risks for the return volatility of emerging markets
- Measuring the utility gains of observing climate risks in emerging markets
- Portfolio diversification strategies between eco-friendly stocks and conventional stocks in emerging markets
- Effective policy responses to climate change among emerging economies
- Using new/updated datasets and new/existing methods to analyze the connection between climate risks and emerging markets
