With every new natural disaster, the voices of climate change deniers are becoming less audible. Global leaders are slowly, but surely, starting to take the risks seriously. The clock is ticking.
Beyond the existential risk to the planet and humanity, there are also serious economic risks at play. To the extent that climate deniers tend to camp in conservative pastures, framing climate change as an economic issue may make them more likely to come to the table.
Federal Reserve governor Lael Brainard is doing just that. In a speech last week, Ms. Brainard said "there is growing evidence that extreme weather events related to climate change are on the rise—droughts, wildfires, hurricanes, and heat waves are all becoming more common,“ adding that "climate change is already imposing substantial economic costs and is projected to have a profound effect on the economy at home and abroad.”
Clearly, the Federal Reserve is worried about the price tag these natural disasters will continue piling on with each new year. Ms. Brainard said that “future financial and economic impacts will depend on the frequency and severity of climate-related events and on the nature, and the speed at which countries around the world transition to a greener economy.”
For investors, the shift to environmental sustainability and cleaner energy could spell major opportunities, particularly for companies at the forefront of the energy revolution. For investors curious about what companies are pioneering alternative power and energy, A.I.dvisor has a roundup for you below, with possible trade ideas.