PECan (The Political Economy of Climate Policy and Finance) is a Junior Research Group funded by the German Ministry of Education and Research (BMBF). We are based at the Humboldt-Universität zu Berlin and the Potsdam Institute for Climate Impact Research (PIK).

The PECan Research Group is led by Achim Hagen and explores the socio-ecological interactions between climate, political and financial systems.

We address research questions such as:

• How high are physical and political transition risks for the financial sector and how can they best be measured?

• How are climate transition risks priced on financial markets and what are the implications for different key stakeholders?

• How does climate policy making interact with the financial sector and its regulation?

• Which politico-economic barriers prevent a sustainable transformation and how can they be resolved?

• How can retail investors participate in the transition and what potential does such participation hold?

We combine theoretical models, empirical research, scenario analysis, agent-based models and climate stress tests.

We involve central banks, NGOs, think tanks and private actors in our research.