Risks and Carney at LLoyd’s: Climate change is a ‘tragedy of the horizons’

Posted on 3 October 2015 by ecoquant

Carney mentions three channels for climate change to affect financial stability.

  1. Physical risks, or impacts today on insurance liabilities, and value of financial assets.
  2. Liability risks, or risks that could arise tomorrow, should those harmed by the effects of climate change seek compensation from those responsibility.
  3. Transition risks, such as “jump to distress pricing”, due to the need to rapidly change to a new energy system, or a transition to adapt to the consequences of a +2 degree C world.

    4. I also like his quote, that “Your genius has been to recognize that past is not prologue, and that the catastrophic norms of the future can be seen in the tail risks of today.”

About ecoquant

See https://wordpress.com/view/667-per-cm.net/ Retired data scientist and statistician. Now working projects in quantitative ecology and, specifically, phenology of Bryophyta and technical methods for their study.
This entry was posted in Anthropocene, carbon dioxide, citizenship, civilization, climate, climate change, climate disruption, ecology, economics, environment, ethics, geophysics, global warming, Hyper Anthropocene, investing, physics, rationality, reasonableness, risk, the value of financial assets. Bookmark the permalink.

Leave a reply. Commenting standards are described in the About section linked from banner.

Fill in your details below or click an icon to log in:

Gravatar
WordPress.com Logo

You are commenting using your WordPress.com account. ( Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. ( Log Out /  Change )

Cancel

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.