Transitional Risk

Physical climate impacts increasingly confront investors with unplanned and abrupt changes or disruptions to businesses or assets. In addition, investors face transition risk to a low-carbon and climate resilient future. This has different angles: changes in climate and energy policies, a shift to low-carbon technologies and liability issues. Transitional impacts can vary substantially depending on scenarios for policy and technology changes.

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What may be the impact on future climate policies and fossil fuel markets if key technologies, such as carbon capture and storage, do not work as planned?

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