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Climate Change Poses Major Risks to Financial Markets, Regulator Warns

2 pointsby saravana85almost 6 years ago

1 comment

Bostonianalmost 6 years ago
Financial markets are discounting mechanisms. If climate change causes losses from weather events to increase, insurance and insurance companies will be repriced accordingly. Commodity futures prices reflect the weather hour by hour. If climate change reduces GDP by 10% over a century, that reduces growth by 0.1% a year. A moratorium on fossil fuels would cost much more than that.