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Guardian
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Climate crisis on track to destroy capitalism, warns top insurer
- Climate crisis poses a threat to capitalism as extreme weather impacts leave the financial sector unable to function, warns a top insurer.
- Insurers may soon be unable to offer cover for many climate risks due to rising global temperatures, impacting financial services from mortgages to investments.
- Current global carbon emissions trajectory could lead to a temperature increase between 2.2C and 3.4C, making adaptation to climate impacts impossible.
- The insurance industry emphasizes the urgency of transitioning to zero-emission energy to mitigate climate risks, estimated to have cost $2tn globally over the past decade.
- The lack of insurance coverage for climate risks poses a systemic threat to the financial sector, affecting various industries and rendering entire regions uninsurable.
- Billions of people cannot easily adapt to worsening climate impacts, as seen in increased disaster recovery spending and the risk of cities becoming uninhabitable.
- At 3C of global heating, the financial sector faces a collapse, with mortgages, real estate development, investments, and financial stability at risk.
- The urgent solution lies in reducing fossil fuel emissions, with a call for capitalism to prioritize sustainability goals alongside financial goals.
- The high cost of inaction in addressing climate change outweighs the cost of transformation, leading to a more competitive economy and improved quality of life.
- Financial institutions' retreat from climate action post-Trump administration highlights the need for immediate and comprehensive action to tackle the climate crisis.
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