Asset managers who are slow to appreciate the climate change threat "may see the value of energy or power company holdings decline" as investors become aware of the liabilities linked with carbon intensive industries, the report concludes.Fire in the Los Angeles National Forest on September 23. Three years of drought across the the USA has left forests tinder dry. In 2000, fire suppression costs across the U.S. totalled $1,362 billion.
Recommendations in the report's "blueprint for action" include urging insurers and re-insurers to better reflect the risks from climate related perils in policies and to develop public/private partnerships in high risk areas so that cover can be maintained.
Commercial banks should fully price risks from climate change into loan agreements
Recommendations in the report's "blueprint for action" include urging insurers and re-insurers to better reflect the risks from climate related perils in policies and to develop public/private partnerships in high risk areas so that cover can be maintained.
Commercial banks should fully price risks from climate change into loan agreements
and give incentives to schemes that encourage energy efficiency or cleaner fuels.
Greenhouse gas trading markets will need standardized accounting methods to operate, an area where financial professionals can contribute to solving the problem.
"Given the financial muscle available to them," said Toepfer, "these institutions could move markets and minds to deliver a cleaner, healthier and less vulnerable world for the benefit of the world economy, for the benefit of people everywhere."
Greenhouse gas trading markets will need standardized accounting methods to operate, an area where financial professionals can contribute to solving the problem.
"Given the financial muscle available to them," said Toepfer, "these institutions could move markets and minds to deliver a cleaner, healthier and less vulnerable world for the benefit of the world economy, for the benefit of people everywhere."