Climate change not a risk to financial markets in short term
The direct physical effects of climate change 鈥渧ery likely do not constitute a risk鈥� for the stability of European financial markets until 2030, according to preliminary results of an upcoming report by the Federal Ministry of Finance. 鈥淗ow likely transitional risks [鈥 might occur is difficult to assess鈥�, as they depend on changes in national climate policy regulations, writes the ministry in its monthly report for August. As an example, the ministry warns of a 鈥渢ransitional shock鈥� if the federal government were to decide to steer CO2-emission prices towards the true economic costs, instead of the current market price. These real economic costs were not taken into account in the evaluation of relevant financial assets, so many assets 鈥渨ould heavily lose in value鈥�.
Find the finance ministry's monthly report for August in German .