Understanding climate change’s economic impacts with one of the world’s most advanced macroeconomic models.
Cambridge Econometrics’ globally recognized E3ME model is a key component of Ortec Finance’s ClimateMAPS - climate scenario analysis solution. By utilizing it within our Ortec Finance Climate Scenarios, we can incorporate a comprehensive range of climate-related transition risk drivers, including low-carbon regulatory and fiscal policies, technology uptake, energy demand and emissions at country and sector levels.
Ortec Finance has exclusive rights to access E3ME within its proprietary climate scenario modeling, as part of a longstanding partnership with Cambridge Econometrics established in 2019.
Why we utilize E3ME to model climate transition risks
Capture the effects of the low-carbon transition on the real economy at a highly granular sector and regional level
Model the impact of a wide range of policies to reduce CO₂ emissions for individual countries
Model the dynamic take-up of technologies, taking account of real-world frictions
Account for worldwide macro-economic interactions and industry supply chain interdependencies
Realistically represent the financial sector in a way that allows for investment stimulus effects via its non-equilibrium modeling approach
Applying E3ME to ClimateMAPS
The data generated from E3ME is integrated with our proprietary stochastic financial model and extreme weather (acute physical risk) modeling tool to quantify climate change risks and opportunities for investors. Together, we believe this combined approach provides the most robust modeling available in the market, with a realistic and comprehensive assessment of climate change’s impacts under different plausible futures across a wide range of economic variables and asset classes, geographies and sectors.
About ClimateMAPS
ClimateMAPS - Ortec Finance’s award-winning climate scenario analysis solution, offered in exclusive partnership with Cambridge Econometrics, enables financial institutions to quantify their portfolio’s climate risk exposure and identify opportunities relative to a baseline with 2°C to 3 °C degrees warming. With global coverage of 600+ economic and financial variables, ClimateMAPS provides comprehensive insights to help financial institutions translate the impact of climate change on investments.
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