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IMF warns investors: You’re not ready for climate change

by Laura Millan Lombrana and Eric Martin, Bloomberg Green


Highlights

  • A new report from the International Monetary Fund (IMF) says investors worldwide are underestimating the financial risks from climate change, and companies need to start disclosing their exposure
  • Asset prices currently fail to reflect the risk of extreme weather events that may cost $1 trillion annually starting in 2050
  • The cost of climate disasters such as wildfires, flooding, and storms has also spiked, rising above $120 billion annually from $22 billion in the 1980s
  • Sustainable Investing has spiked and these funds hold a large percentage of equity shares globally
  • Equity investors struggle with focusing on long-term challenges, such as climate change, as they traditionally analyze short term effects 

Fossil fuel divestment and the transition to 100% clean energy is a major step towards achieving the Climate Center’s Climate-Safe California Platform.


Read More: https://www.bloomberg.com/news/articles/2020-05-29/imf-warns-stock-investors-to-pay-more-attention-to-climate-risks?sref=ABTRBDIh

UBS says investors should prefer green bonds over regular debt

By David Caleb Mutua, Bloomberg


Highlights

  • According to UBS Global Wealth’s head of credit, Thomas Wacker, sustainable bonds are a “defensive opportunity” that credit investors should favor over non-green, investment-grade corporate notes
  • The fossil fuel industry has no presence in the green bond market and are feeling the impacts of the turning economy due to the COVID-19 pandemic
  • According to Bloomberg, Barclays U.S. Green Bond Index is down 2.5% so far this year compared to the 5.1% drop seen in the corporate debt benchmark
  • Investors that own green bonds tend to hold on to sustainable debt when selling down a portfolio because of their scarcity
  • The long-term nature of green energy projects like wind parks means that they weather this kind of downturn better

Fossil fuel divestment and the transition to 100% clean electricity a major step towards achieving the Climate Center’s Climate-Safe California Platform.


Read More: https://www.bloomberg.com/news/articles/2020-03-30/ubs-says-investors-should-prefer-green-bonds-over-regular-debt

EU sets out trillion euro plan to avert ‘climate crash’

by Marine Strauss, Reuters

STRASBOURG, France (Reuters) – The EU budget chief said the bloc needs to invest dedicated funds to avert a “climate crash” as Brussels detailed how it planned to pay for a trillion euro push to cut net C02 emissions to zero by 2050 and protect member countries dependent on coal.

The financial challenge for Europe is huge: the European Commission executive arm estimates that halving emissions by 2030 would require 260 billion euros of investment a year in the energy, transport and construction sectors.

Read more: https://www.reuters.com/article/us-eu-climate/eu-unveils-plan-for-climate-cash-to-avoid-climate-crash-idUSKBN1ZD00H