A new study has found that an average of $2.5 trillion of global financial assets could be "at risk" from the effects of climate change.
The paper – from researchers at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science and Vivid Economics – looked at the financial impact of the planet's mean surface temperature increasing by 2.5°C above pre-industrial levels by 2100. The study was published in the journal Nature Climate Change on Monday.
Its authors also found that because of the "uncertainties" inherent in estimating "climate Value at Risk", there was a one percent chance that warming of 2.5°C could put 16.9 percent of global assets – $24 trillion – at risk.
"Our results may surprise investors, but they will not surprise many economists working on climate change because economic models have over the past few years been generating increasingly pessimistic estimates of the impacts of global warming on future economic growth," Simon Dietz, the paper's lead author, said in a news release.