Climate and capital: complexity is a poor excuse for not properly insuring against risk
Lukaz Krebel wrote for The Banker
09 February 2023
Lukasz wrote for The Banker about the need for greater regulation in finance against climate risks.
“The climate crisis poses a threat to the financial system and macroeconomic stability in two primary ways. First, the physical risks of increasingly frequent and severe weather events and environmental damage that will lead to financial losses. Second, the transition risks of the UK and other economies moving towards net-zero emissions, resulting in fossil fuel assets continually declining in value (to zero) and eventually becoming ‘stranded’.”
