Climate Change Poses Major Risks to the Financial System - Here's Why
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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
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