Trillions in Assets Need Repricing to Achieve Net-Zero Emissions Targets
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Financial markets must shift trillions of dollars to achieve net-zero emissions by 2050, as per the Paris Agreement. This shift is already happening.
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Most companies and assets are currently not aligned with the 1.5°C global warming target. Significant growth in clean energy investment is needed.
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Financial securities do not adequately capture long-term climate risks. More advanced data tools can help investors properly assess asset values.
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Repricing assets and shifting capital allocation will accelerate real-world decarbonization. Carbon credits can play a role if there is transparency.
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Global carbon pricing would best promote net-zero asset repricing, but difficult politically. Climate-linked financial instruments are an alternative.