Climate change is a threat to financial markets not just because of potential natural disasters, but also due to a tightening of climate protection measures, writes Michael Bauchmüller in the Süddeutsche Zeitung, citing a report prepared for the German Finance Ministry. But a ministry spokesman said there was no “immediate need for regulatory measures”, according to the newspaper. The report warned there could be “considerable losses” due to “transition risks”, Bauchmüller says. “Therefore, an orderly transition to a carbon-reduced economy with clear, long-term signals from policymakers from the point of view of the financial market stability is desirable,” the report, prepared by Swiss investment group “South Pole Group” states, according to the newspaper.
Read the article in German here.