India, July 12 -- India's financial system faces a growing threat from green swan events-climate-driven crises marked by unpredictable, cascading impacts that could destabilise markets and worsen inequality. Unlike rare black swan events, green swans are inevitable due to the climate crisis, combining physical risks (floods, droughts) and transition risks (policy shifts, tech disruptions). With over $70 billion in climate-related losses since 2019 and 2,000+ fatalities, India ranks among the most vulnerable nations globally.

Green swans represent systemic climate threats that defy conventional risk modelling. Traditional risk assessment models that extrapolate from historical trends are insufficient for fully appreciating the systemic ri...