Climate change will wipe $2.5tn off global financial assets: study

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"Losses could soar to $24tn and wreck the global economy in worst case scenario, first economic modelling estimate suggests"

"The new study, published in the peer-reviewed journal Nature Climate Change, used economic modelling to estimate the impact of unchecked climate change. 

It found that in that scenario, the assets were effectively overvalued today by $2.5tn, but that there was a 1% chance that the overvaluation could be as high as $24tn.
The losses would be caused by the direct destruction of assets by increasingly extreme weather events and also by a reduction in earnings for those affected by high temperatures, drought and other climate change impacts."

Read the Guardian article

#climate catastrophe  #stranded assets  #economy  #global economy  #climate action  #extreme weather events  # economic modelling  #financial assets 

Talk is Cheap: Towards Active State Ownership in the Fossil Fuel Industry: Medium

Photo by Kevin Harris on Unsplash

"SOEs should seek to fulfill social and environmental objectives, beyond profit maximization and the economic rationale of minimizing the risk of stranded assets."

"The combustion of fossil fuels for energy is by far the largest source of greenhouse gas emissions and the energy sector will need change in order for long-term de-carbonization to succeed. So, it is disappointing that there has been little concrete climate action from the fossil fuel industry, despite commitments to the Paris Agreement."