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Climate climate change  cause of the next global economic collapse  | Upload Man-Made

Climate Change: Cause Of The Next Global Economic Collapse

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climate change  cause of the next global economic collapse  | Upload

Did you ever think about the possibility of economic devastation because of natural disasters? Geoff Dembicki - journalist en author of Are We Screwed? How a New Generation Is Fighting to Survive Climate Change - did, and thinks you should, because it’s very real: we can all remember the wildfires in America that bankrupted the California utility PG&E. For Vice, he describes how this collapse could happen and how climate change could be causing the next financial crisis.

"If you said just a few years ago that starting forest fires because of transmission malfunctions was going to collapse a major American utility, people would be like, ‘No that’s crazy, that can’t happen.’ But here we are,” says Elias Hinckley - an energy and climate finance lawyer at the global law firm K&L Gates in Washington, DC – to Dembicki for his Vice article. Because: what if a threat you dismissed as notional and vague suddenly becomes real - and impossible to stop?

Bankruptcy by climate change

That's exactly what happened to the Californian Pacific Gas and Electric Company, who provides natural gas and electric service in this state. Dembicki explains for Vice that the existential threat of bankruptcy by natural disasters was distant, until it was too close to ignore. According to his investigations on this matter, fire researchers found that PGE&E power lines and transformers started leastwise seventeen of the 21 major state fires in 2017, and even more in 2018, where the state fires turned into massive wildfires because of hot and dry conditions, worsened by a warming climate.
The Californian utility faced answerabilities of 30 billion dollar and 750 lawsuits; investors freaked and PGE&E formerly beloved by hedge funds, declared bankruptcy. Its market value dropped from 25 billion dollar to less than $4 billion.

A genuine threat to the economic system

When you’re starting to see the worsening environmental condition as a real future risk for the financial world, you will sense vulnerabilities everywhere. According to Dembicki, the question isn’t no longer if climate change is a genuine threat to the economic system, but: who will it strike? He states some potential outcomes: a hurricane that bankrupts the state of Florida, a housing foreclosure crisis caused by flooding in Texas, an economic meltdown brought on by the Colorado River going dry. In December 2018, 415 investors put out a statement warning that climate change could cause $23 trillion in global economic destruction over the next eighty years.
"That’s absolutely accurate," Beau O’Sullivan tells Vice. He is a spokesperson for the UK-based responsible investing advocacy group ShareAction. "When this carbon bubble bursts, we’ll see huge reverberations across our financial system, because climate change is a such a systemic risk that it touches every area of our lives."  

Bend and break

Dembicki has done his research and sends in the knowledge of Florida storm expert Lorilee Medders, a Florida storm risk expert. In a paper she states: "The state of Florida itself is heavily leveraged as insurer for much of the cost of extreme weather in the form of hurricanes and other tropical storms." But Michael Wara, a lawyer and research fellow at Stanford's Woods Institute for the Environment, explained to Dembicki that the wrong combination of factors - for example a Category 4 hurricane tearing into Miami along with a major storm surge—might cause major financial disruptions. “You could easily see the state of Florida go bankrupt," he said to Vice. "The companies systems for managing risk can bend a little bit. But they don’t sort of gradually evolve - what happens is they break, and that is what we’re observing in California right now."

Hypothetical scenarios

Of course, a housing foreclosure crisis in Texas, a bankrupt of Florida because of a hurricane and an economic meltdown because of a dry Colorado River are all imaginary scenarios, states Dembicki in this article for Vice. He says that these scenarios are not guaranteed to happen, or even likely to happen. However, Dembicki says, if we observe the situation of PG&E’s collapse, climate change is now testing the limits of society’s ability to manage and define financial risk. This fact has yet to sink in with the planet’s top risk assessors: insurance companies.

Climate aware investments

According to Vice, a recent survey of the world’s 80 largest insurers done by the Asset Owners Disclosure Project found only one-third "can say their approach to investing is climate-aware." And 43 percent of the 'laggards' named by the survey—that is, insurers with limited or no consideration of financial risks created by climate change—are based in the US. What to think of that? “They’re probably not taking these risks seriously enough because they see them as long-term,” said O’Sullivan, who’s company also manages this Asset Owners Disclosure Project. "They think they have more time, but they don’t." Dembicki thinks it all seems to start with the realization that climate change is in fact a real future risk for companies.
Hinckley, the energy and climate finance lawyer who Dembicki interviewed, agrees the risk of enormous and long-lasting financial damage from climate change is real. “If you start to see enough pressure in the system,” he said, whether from climate-related calamities or a loss of investor confidence that comes with them. "At some point you slide past the place where your economy is growing to one where it’s retracting. We try to avoid that."

It cán happen

What can we learn from this Vice article by Geoff Dembicki? Well, a global economic collapse really could be caused by climate change. It is important to keep our eyes open and not put this possibility away as fictive, it cán happen, as we saw on a smaller note in California, with a huge financial impact for the Californian Pacific Gas and Electric Company. 

https://www.whatsorb.com/climate/the-paris-climate-agreement--no--we-won-t-make-it-

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Climate Change: Cause Of The Next Global Economic Collapse

Did you ever think about the possibility of economic devastation because of natural disasters? Geoff Dembicki - journalist en author of Are We Screwed? How a New Generation Is Fighting to Survive Climate Change - did, and thinks you should, because it’s very real: we can all remember the wildfires in America that bankrupted the California utility PG&E. For Vice, he describes how this collapse could happen and how climate change could be causing the next financial crisis. "If you said just a few years ago that starting forest fires because of transmission malfunctions was going to collapse a major American utility, people would be like, ‘No that’s crazy, that can’t happen.’ But here we are,” says Elias Hinckley - an energy and climate finance lawyer at the global law firm K&L Gates in Washington, DC – to Dembicki for his Vice article. Because: what if a threat you dismissed as notional and vague suddenly becomes real - and impossible to stop? Bankruptcy by climate change That's exactly what happened to the Californian Pacific Gas and Electric Company, who provides natural gas and electric service in this state. Dembicki explains for Vice that the existential threat of bankruptcy by natural disasters was distant, until it was too close to ignore. According to his investigations on this matter, fire researchers found that PGE&E power lines and transformers started leastwise seventeen of the 21 major state fires in 2017, and even more in 2018, where the state fires turned into massive wildfires because of hot and dry conditions, worsened by a warming climate. The Californian utility faced answerabilities of 30 billion dollar and 750 lawsuits; investors freaked and PGE&E formerly beloved by hedge funds, declared bankruptcy. Its market value dropped from 25 billion dollar to less than $4 billion. A genuine threat to the economic system When you’re starting to see the worsening environmental condition as a real future risk for the financial world, you will sense vulnerabilities everywhere. According to Dembicki, the question isn’t no longer if climate change is a genuine threat to the economic system, but: who will it strike? He states some potential outcomes: a hurricane that bankrupts the state of Florida, a housing foreclosure crisis caused by flooding in Texas, an economic meltdown brought on by the Colorado River going dry. In December 2018, 415 investors put out a statement warning that climate change could cause $23 trillion in global economic destruction over the next eighty years. "That’s absolutely accurate," Beau O’Sullivan tells Vice. He is a spokesperson for the UK-based responsible investing advocacy group ShareAction. "When this carbon bubble bursts, we’ll see huge reverberations across our financial system, because climate change is a such a systemic risk that it touches every area of our lives."   Bend and break Dembicki has done his research and sends in the knowledge of Florida storm expert Lorilee Medders, a Florida storm risk expert. In a paper she states: "The state of Florida itself is heavily leveraged as insurer for much of the cost of extreme weather in the form of hurricanes and other tropical storms." But Michael Wara, a lawyer and research fellow at Stanford's Woods Institute for the Environment, explained to Dembicki that the wrong combination of factors - for example a Category 4 hurricane tearing into Miami along with a major storm surge—might cause major financial disruptions. “You could easily see the state of Florida go bankrupt," he said to Vice. "The companies systems for managing risk can bend a little bit. But they don’t sort of gradually evolve - what happens is they break, and that is what we’re observing in California right now." Hypothetical scenarios Of course, a housing foreclosure crisis in Texas, a bankrupt of Florida because of a hurricane and an economic meltdown because of a dry Colorado River are all imaginary scenarios, states Dembicki in this article for Vice. He says that these scenarios are not guaranteed to happen, or even likely to happen. However, Dembicki says, if we observe the situation of PG&E’s collapse, climate change is now testing the limits of society’s ability to manage and define financial risk. This fact has yet to sink in with the planet’s top risk assessors: insurance companies. Climate aware investments According to Vice, a recent survey of the world’s 80 largest insurers done by the Asset Owners Disclosure Project found only one-third "can say their approach to investing is climate-aware." And 43 percent of the 'laggards' named by the survey—that is, insurers with limited or no consideration of financial risks created by climate change—are based in the US. What to think of that? “They’re probably not taking these risks seriously enough because they see them as long-term,” said O’Sullivan, who’s company also manages this Asset Owners Disclosure Project. "They think they have more time, but they don’t." Dembicki thinks it all seems to start with the realization that climate change is in fact a real future risk for companies. Hinckley, the energy and climate finance lawyer who Dembicki interviewed, agrees the risk of enormous and long-lasting financial damage from climate change is real. “If you start to see enough pressure in the system,” he said, whether from climate-related calamities or a loss of investor confidence that comes with them. "At some point you slide past the place where your economy is growing to one where it’s retracting. We try to avoid that." It cán happen What can we learn from this Vice article by Geoff Dembicki? Well, a global economic collapse really could be caused by climate change. It is important to keep our eyes open and not put this possibility away as fictive, it cán happen, as we saw on a smaller note in California, with a huge financial impact for the Californian Pacific Gas and Electric Company.  https://www.whatsorb.com/climate/the-paris-climate-agreement--no--we-won-t-make-it-