Of the over 400 climate scenarios assessed in the 1.5°C report by the Intergovernmental Panel on Climate Change (IPCC), only around 50 scenarios avoid significantly overshooting 1.5°C. Of those only around 20 make realistic assumptions on mitigation options, for instance the rate and scale of carbon removal from the atmosphere or extent of tree planting, a new study shows. All 20 scenarios need to pull at least one mitigation lever at challenging rather than reasonable levels.
IIASA
The way in which banks react to climate risks and uncertainty could impact financial stability as well as the world’s transition to a low-carbon economy. A new study by researchers from IIASA and the Vienna University of Economics and Business explored the role that banks’ expectations about climate-related risks will play in fostering or hindering an orderly low-carbon transition.
According to the study published in a special issue on climate risks and financial stability of the Journal of Financial Stability, banks and their expectations about climate-related risks – and especially climate transition risk stemming from a disorderly introduction of climate policies – play an important role in the successful transition to a low-carbon economy, as lower credit costs could make green (low-carbon) investments more competitive, allowing such investments to be made at scale. Depending on the timing and structure of implementation, climate policies could however also lead t
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