An average $2.5 trillion (£1.76trn) of the world’s financial assets would be at risk from climate change impacts if global temperatures are left to increase by 2.5°C by 2100, warns a new study by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics.

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The study estimates that the value at risk would be “significantly reduced” if countries are successful in limiting warming to 2°C by the end of the century. This would see an average $1.7 trillion (£1.2trn) in financial assets at risk compared to the more dangerous 2.5°C climate change scenario.

Even when factoring in the costs of reducing greenhouse gas emissions in an effort to limit warming to 2°C the study finds that global financial assets are set to be worth $315 billion (£221bn) more than under a business as usual scenario.   …

However, due to the uncertainties in estimating the ‘climate value at risk’ the report finds there is a 1 percent chance that warming of 2.5°C could threaten almost 17 percent of all global financial assets worth $24 trillion ($16.8trn).

Limiting warming to 2°C would see a 1 percent chance that $13.2 trillion (£9.28trn) of the world’s financial assets are put at risk from climate impacts.

$2.5 Trillion Worth of Global Financial Assets at Risk From Climate Change Impacts by End of Century, Study Warns
http://www.desmog.uk/2016/04/04/2-5-trillion-worth-global-financial-assets-risk-climate-change-impacts-end-century-study-warns