The risk of coastal flooding is increasing due to climate change. The work estimates the expected impact of these events on the mortgage portfolio of some banks operating in the municipality of Rimini, an area particularly exposed to that risk. The analysis considers different future scenarios, with and without adaptation measures; among the latter, the impact of Parco del Mare, a coastal barrier to contain sea-level rise, is assessed.
Adaptation measures significantly reduce the mortgage portfolio expected losses, with a noteworthy heterogeneity among intermediaries. The analysis highlights significant gaps in the availability and quality of data; that information, in particular that relating the location of the exposed properties and the damage they could suffer if the event materializes, is essential for an accurate assessment of the physical risks arising from climate change.
