Loading the DICE Against Pensions – Carbon Tracker Initiative
“a call to action for investment professionals to look at the compelling evidence we see in the climate science literature, and to implement investment strategies, particularly a rapid wind down of the fossil fuel system, based on a ‘no regrets’ precautionary approach”:
Economists have claimed, in refereed economics papers, that 6°C of global warming will reduce future global GDP by less than 10%, compared to what GDP would have been in the complete absence of climate change. In contrast, scientists have claimed, in refereed science papers, that 5°C of global warming implies damages that are “beyond catastrophic, including existential threats,” while even 1°C of warming — which we have already passed — could trigger dangerous climate tipping points. This results in a huge disconnect between what scientists expect from global warming, and what pensioners/investors/financial systems are prepared for. Consequently, a wealth-damaging correction or “Minsky Moment” cannot be ruled out, and is virtually inevitable.
(tags: economics climate-change pensions future gdp)