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Capital Letter: Climate & Central Banks: Regulators Doing What They Shouldn't


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European Central Bank President Christine Lagarde addresses an event to launch the private finance agenda of the 2020 United Nations Climate Change Conference in London, England, February 27, 2020.
(Tolga Akmen/Pool via Reuters)
I felt spoiled for choice when it came to a topic with which to preface this week’s Capital Letter. Dogecoin went quite a long way toward the moon, the U.N.’s secretary-general has pushed for a “solidarity” or wealth tax, and digging further into the details of the administration’s planned new corporate-tax regime produced yet more nasty surprises.
That said, I think that it’s worth continuing to watch how the regulatory state continues to push ahead with its climate agenda in a way that bypasses the normal democratic process and is still not subject to enough scrutiny. ....

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Climate change a 'major source of systemic risk' over next 30 years, warns ECB

'Garbage' models and black boxes? The science of climate disaster planning


POLITICO
‘Garbage’ models and black boxes? The science of climate disaster planning
Scientists warn that the data may be too unreliable to guide the precautions that governments, businesses and retirement fund managers must take in the coming decades.
Firefighters set a backfire to protect homes and try to contain a California wildfire. | David McNew/Getty Images
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A new breed of data-crunching consultants has emerged to help big corporations and federal agencies assess the long-term dangers they face from climate change everything from flooding risks for electrical substations to drought threats for supply chains.
But while those firms’ computerized projections may help satisfy shareholders and activists demands for fuller risk disclosures and stronger actions to counter the threats, scientists warn that the data may be too unreliable to guide the precautions that governments, businesses and retirement fund managers must take in the com ....

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Moody's ESG Solutions Group: Moody's Launches Comprehensive Suite of Climate Solutions


Moody s ESG Solutions Group: Moody s Launches Comprehensive Suite of Climate Solutions
Moody s ESG Solutions Group today announced the launch of Climate Solutions, a comprehensive product suite that provides market participants with enhanced risk measurement and evaluation tools to better understand, quantify and manage climate risks and opportunities. Climate Solutions incorporates physical and transition risk into Moody s best-in-class risk management solutions and economic models to enable banks, insurers and investors to better assess climate risks and comply with the emerging regulatory requirements for stress testing and disclosures.
Climate change has a profound impact on the world s economies and societies, said Mark Kaye, Chief Financial Officer and Executive Sponsor of Moody s ESG Solutions Group. Moody s is committed to offering science-driven, objective analytics to advance strategic resilience and to help market participants navigate the transformation to ....

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