Beyond hazards and sectors: governing systemic climate risks

This report by the Stockholm Environment Institute examines the gap between the recognition of systemic climate risks—interconnected risks across hazards, sectors, and borders—and their operationalization in adaptation governance. Through a comparative analysis of Europe, Southeast Asia, and the United States, the authors find that while systemic language is increasingly present in high-level strategies, day-to-day decision-making, funding, and mandates remain fragmented and focused on individual hazards or sectors. The report proposes a conceptual framework for systemic adaptation based on systemic risk framing, policy interlinkages, and the management of deep uncertainty.

• There is a recurring implementation gap where the language of systemic risk is increasingly present in adaptation plans and assessments, but operational routines—including mandates, budgets, and accountability—continue to rely on hazard- and sector-based approaches.
• Adaptation is often pursued alongside competing objectives without sufficient mechanisms to resolve trade-offs or capture co-benefits, which increases the risk of maladaptation and missed resilience gains.
• Non-climate policies, such as land use, infrastructure standards, and public procurement, may amplify exposure and vulnerability more than adaptation strategies reduce them.
• Justice and equity are frequently mentioned as guiding principles in adaptation strategies, but they are rarely embedded as binding criteria in investment decisions or tracked through shared indicators, risking the shifting of burdens onto marginalized groups.
• Governance of deep uncertainty, specifically low-probability high-impact 'tail risks' and tipping points, is underdeveloped; most planning remains incremental and based on 'most likely' futures.
• In Europe, the primary challenge is a lack of 'operational hooks'—such as clear ownership of interdependent risks and funding rules that reward cross-sector prevention—rather than a lack of systemic awareness.
• In Southeast Asia, systemic awareness is emerging, particularly regarding multi-hazard dynamics, but is severely constrained by limited analytical capacity, data gaps, and fragmented mandates at the subnational level.
• In the United States, federal assessments articulate cascading risks, but state-level operationalization is uneven due to fragmented funding streams and political contestation.
• The report proposes a conceptual framework for systemic adaptation based on three pillars: systemic risk framing, policy interlinkages, and managing deep uncertainty, intended to stress-test plans and investments for interdependencies and maladaptation.

APA

Mikaelsson, M. A., Crouse, C., Carr, E. R., & Klein, R. J. (2026). Beyond hazards and sectors: governing systemic climate risks. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2026/05/sei-report-may-2026-beyond-hazards-sectors-3.pdf

Chicago

Mikaelsson, Mikael Allan, Cynthia Crouse, Edward R. Carr, and Richard J.T. Klein. Beyond hazards and sectors: governing systemic climate risks. Stockholm Environment Institute, 2026. https://www.sei.org/wp-content/uploads/2026/05/sei-report-may-2026-beyond-hazards-sectors-3.pdf.

Wikipedia

{{cite report |last1=Mikaelsson |first1=Mikael Allan |last2=Crouse |first2=Cynthia |last3=Carr |first3=Edward R. |last4=Klein |first4=Richard J.T. |title=Beyond hazards and sectors: governing systemic climate risks |publisher=Stockholm Environment Institute |date=May 2026 |url=https://www.sei.org/wp-content/uploads/2026/05/sei-report-may-2026-beyond-hazards-sectors-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mikaelsson2026beyond, author = {Mikaelsson, Mikael Allan and Crouse, Cynthia and Carr, Edward R. and Klein, Richard J.T.}, title = {{Beyond hazards and sectors: governing systemic climate risks}}, institution = {Stockholm Environment Institute}, year = {2026}, month = may, url = {https://www.sei.org/wp-content/uploads/2026/05/sei-report-may-2026-beyond-hazards-sectors-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }