Climate change, along with the overuse of natural resources, poses not just a global environmental risk but also raises the potential of serious financial shocks to the economy. While some of the dangers based on the current trajectory of environmental degradation are knowable, others present asymmetric perils to the financial ecosystem, argue authors Dirk Schoenmaker and Rens van Tilburg. getAbstract recommends their cogent report to policy makers, financial executives and others interested in the nexus of finance and energy.
In this summary, you will learn
- Why the world’s extensive reliance on fossil fuels is posing risks both to the environment and the economy,
- What the “carbon bubble” means, and
- How standardized carbon accounting data and disclosure can help the transition from fossil fuels.
About the Authors
Dirk Schoenmaker is a senior fellow at Bruegel. Rens van Tilburg is the director of the Sustainable Finance Lab at Utrecht University.