Climate Study: the price of temperature change – New Technology

If global warming continues 2.5 degrees this century is threatened financial assets of 2,500 billion dollars, according to a new study.

The study comes from the London School of Economics and Political Science and is published in the journal Nature Climate Change.

the study also shows that if we manage to limit the temperature increase, according to the Paris Agreement in 2015, to 2 degrees Celsius, so the effect will be considerably smaller and reduced to 1,700 billion dollars.

But while scientists warn Simon Dietz in the forefront that there are many uncertainties in the estimates. In a worst case scenario, with a 1 percent risk, so the losses can be as large amount 24000 billion. It would be equivalent to 16.9 percent of total world financial assets 2100. Scientists recalls that the share value of the world’s total fossil energy companies today are estimated at 5000 billion dollars.

At the lower temperature rise under threat reportedly assets worth 1,700 billion dollars, but in the worst case, the risk is 1 percent of assets at 13200 billion are threatened.

Simon Dietz points out that the report pinpoints the risks that long-term investors such as pension funds, must expect to come. He says the study is the first to assess climate risks from an economic perspective, but given the enormous difficulties to assess the economic models of climate change, this is just the beginning of a long debate.