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Category Climate Change

Markets are ignoring the new inflation reality

Markets have entirely recovered after their wobble earlier this week, but it’s based on a simple belief: central banks will stand behind markets. Investors are increasingly convinced inflation threats are irrelevant – and they are wrong to do so. Inflation risks are growing from immediate climate change, the costs of rising environmental instability and inflation leaching out of financial assets into the real economy.

Freedom? Markets and Climate Chaos

Its “Freedom Day” in the UK, but it feels same as, same as. Bond markets look stressed, but freak weather is raising the probability government intervention dwarfing the scale of the pandemic may become necessary. There will not be a gradual, ordered progression to a new higher temperature climate.  Instead… the reality looks like high-cost chaotic freak-weather events becoming increasingly common.  The cost could hit trillions.

Watch the Weather – it’s the No-See-Um that could roil markets

The dramatic global weather seen in June could be a wake-up call for us all. Green-bond huggers and ESG-compliant investment committees are determined to do the right thing to get us carbon neutral by whenever, but the climate crisis may be upon us now… which means we need immediate solutions – like insurance and how to mitigate the enormous and escalating potential costs of weather events like “heat-domes”, storms, flood and drought. Today. Not Tomorrow.  

Net Carbon Zero – is this the only way?

The International Energy Authority (IEA) is grabbing all the climate change headlines with its demands for Carbon Zero by 2050 and increased spending on renewable energy. The IEA now represents the consensus – the received wisdom. How achievable are their targets? Or will economic reality and rising costs of climate abatement result in something very different? It’s easy to demand neutrality – but will be frighteningly difficult to achieve.