Objective
Climate extremes are becoming more frequent and severe, creating systemic risks for economic stability and financial markets. Current approaches often examine climate prediction and financial risk separately, leaving a critical gap in understanding how physical hazards translate into market impacts. STOCKCLIM addresses this challenge by developing the first integrated framework to detect, project, and quantify the financial impacts of extreme climate events. The project combines recent advances in machine learning with econometric modeling to map the entire pathway from hazard to market response. Capsule Networks will be trained on reanalysis (ERA5), climate simulations (CESM2-LENS2), and disaster records (EM-DAT) to detect heatwaves, floods, and tropical cyclones. The trained models will then be applied to future climate scenarios (SSP3-7.0) to project shifts in event frequency and intensity. Detected events will be aligned with financial datasets, including stock indices, sector-level returns, and volatility measures. Econometric tools, such as event studies, VAR, GARCH, and GARCH-MIDAS, will be used to estimate short- and medium-term market impacts and develop scenario-based climate stress tests for key financial sectors. Expected outputs include open-source machine learning models, catalogs of historical and projected extremes, high-impact publications, and a lightweight visualization dashboard to explore climate-finance interactions. Together these will provide reproducible, event-level evidence of how extremes influence markets and which sectors are most vulnerable. By bridging climate science, machine learning, and financial econometrics, STOCKCLIM delivers both scientific innovation and actionable insights. Its integration of cutting-edge AI, climate modeling, and financial analysis will advance climate resilience, inform risk management, and train a new generation of interdisciplinary expertise, directly supporting the goals of the MSCA program.
Fields of science (EuroSciVoc)
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.
- natural sciences earth and related environmental sciences environmental sciences sustainability sciences
- engineering and technology environmental engineering ecosystem-based management climate change adaptation
- social sciences sociology governance crisis management
- natural sciences earth and related environmental sciences atmospheric sciences climatology climatic changes
- natural sciences computer and information sciences artificial intelligence machine learning
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Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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HORIZON.1.2 - Marie Skłodowska-Curie Actions (MSCA)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-TMA-MSCA-PF-EF - HORIZON TMA MSCA Postdoctoral Fellowships - European Fellowships
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) HORIZON-MSCA-2025-PF
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
46010 Valencia
Spain
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.