OILPRICE | Financial markets are vastly underestimating the financial risk from climate change, according to the International Monetary Fund.
Global temperatures have already increased by 1.1 degrees Celsius since preindustrial times and are on track to warm somewhere around 3 degrees C by the end of the century, although much depends on what governments do to rein in greenhouse gas emissions. That level of warming is “expected to adversely impact the world’s stock of natural assets,” the IMF said in its Global Financial Stability Report in April. Or, put bluntly, “the projected increase in the frequency and severity of disasters due to climate change is a potential threat to financial stability.”
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