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Climate change is happening now with the next decade
crucial if global warming is to be kept below 2°C over
the pre-industrial average. Scientists warn that this is
essential to avoid climate change tipping points
bringing severe natural and socio-economic stress.
The frequency of extreme weather events – such as this
year’s heat dome over north-western America and floods
in western Europe – is rising and even if greenhouse gas
emissions were cut to zero today, economies will still
have to adapt to changes in climate already underway
including a rise in sea levels.
Key takeaways
The economic cost of unmitigated climate change is large and will rise over time
Global warming and efforts to tackle it will have macroeconomic implications
Investors must understand the profound challenge ahead and the impact on economies and markets