Climate-Related Forest, Food, and Land Risks Threaten US Financial Stability

With 40% of US GDP exposed to climate-related risks from the land use sector, this report analyzes the source of these risks and shares recommendations for the federal government to protect US financial stability.

In the US, 40 percent of GDP is generated from sectors directly exposed to tropical forest, food, and land risk, but the nation’s entire financial system is also exposed in more systemic ways due to the interconnected nature of global climate impacts. The material risk of significant ecosystem service losses in tropical regions and the broad cross-section of US sectors exposed increase the likelihood of political, economic, and social instability. 

This report analyzes the types of climate-related risks related to forest, food, and land that threaten US financial stability, explores which sectors are most affected and why, and shares recommendations for the federal government to take climate action that simultaneously supports national economic interests.