Climategchangegemerginggrisk togfinancialgstability:gCBO

Oman has a substantial amount of vulnerable urban infrastructure located in close proximity to flood-prone areas

Oman’sRinfrastructureRhasRborne theRbruntRofRtropicalRstormsRinRthe lastRdecadeRandRcontinuesRtoRface severeRrisksRofRfloodseRstorm surgesRandRrisingRseaRlevelgRztRthe heartRofRtheRgrowingRenvironmenf talRproblemsRisRclimateRchangee whichRtheR‘entralR ankRofROman a‘ ObRsaysRpresentsRaRsignificant challengeRandRriskRtoRtheRfinancial systemRofRtheRsultanategR

‘ThereRisRgrowingRawareness andRconcernRaboutRtheRimplicaf tionsRofRclimateRchangeRonRtheRfif nancialRstabilityRofROmanRasRit posesRtwoRmajorRtypesRofRrisksg TheRfirstRisRitsRdirectRphysicalRimf pactRleadingRtoRdamageRofRinfraf structureRandRpropertyeRandRthe secondRisRtheRtransitionRrisksRsuch asRchangesRinRclimateRpolicye technologyRandRconsumerRand marketRsentimentse’R‘ ORstated inRitsR Financial Stability Report 2022gR

zccordingRtoROman’sR Second National Communication 2019 Report submittedRtoRtheRUnitedRNaf tionsRFrameworkR‘onventionRon ‘limateR‘hangeeRtheRsultanate hasRaRsubstantialRamountRofRvulf nerableRurbanRinfrastructureRlocf atedRinRcloseRproximityRtoRfloodf proneRareaseRorRsubjectRtoRcoastal inundationRandRstormRsurgeRassof ciatedRwithRseaflevelRrisegR

‘WithRclimateRchangeeROman’s lowflyingRurbanRareasRalongRthe coastRwillRbeRvulnerableRtoRfloodf ingRfromRtheRcombinedRimpactRof seaflevelRriseRandRstormRsurgeRasf sociatedRwithRextremeRweather eventsg’R

zdditionallyeRhydrocarbonfdef pendentRcountriesRlikeROmanRare exposedRtoRaRchallengeRfromRthe driveRtoRreduceRcarbonRfootprinte ‘ ORstatedgR

zRlargeRpartRofROman’sRG’P reliesRonRtheRproductionRandRexf portRofRhydrocarbonsRthatRareRa majorRsourceRofRgreenhouse gasesgR‘ThereforeeRbesidesRtheRclif mateRrisksRfacedRbyRallRother countrieseRphasingRoutRcarbon emissionsRwouldRentailRaRneedRfor massiveRchangesRinRtheRstructure ofRtheReconomyg’R

zssessmentRofRclimateRrisks remainsRaRchallengeRbecauseRof theRdifficultftofpredictRshocks andRsignificantlyRlongRtimeRhorif zonRspanningRoverRdecadesRfor modelingRandRanalysisRofRtransif tionRrisksgR‘NeverthelesseR‘ O continuesRtoRkeepRaRcloseReyeRon theRclimateRchangeRrisksRand strivesRtoRexpandRitsRcapabilityRto formallyRincorporateRtheseRrisks inRitsRassessmentRofRfinancialRstaf bilityg’

‘limateRchangeRisRaRconcern thatROmanRisRworkingRonRserif ouslyRandRthereforeRhasRcommitf tedRtoRaRlowRcarbonReconomyRand reducingRitsRgreenhouseRgas aGHGbRemissionseRaccordingRto theRsultanate’sRNationallyR’eterf minedR‘ontributionRaN’‘bRsubf mittedRtoRtheRUnitedRNations FrameworkR‘onventionRonR‘lif mateR‘hangeg

InRtheRsecondRN’‘eRwhichRthe sultanateRsubmittedRinRkikje OmanRhasRcommittedRtoRslow downRGHGRemissionRgrowthRand reduceRtheseRbyRsevenRperRcentRin kilieRcomparedRtoRtheR usinessf zsfUsualRscenariogRThroughRits IntendedRNationallyR’etermined ‘ontributionseRtheRsultanateRis currentlyRengagedRtoRreduceRits absoluteRGHGRemissionRbyRtwo perRcentRbyRkilig

‘Besides the climate risks faced by all other countries, phasing out carbon emissions would entail a need for massive changes in the structure of the economy’