If the physical future of the planet remains a point of doubt for some people, then perhaps the future of their wallets may hit home a little harder. The London School of Economics just released a study estimating, at the low end, that climate change could cost the entire world roughly $2.5 trillion. The solution, according to the researchers, is the creation of a low-carbon world that has long been touted as a much more economically reasonable. This remains in line with the recent thinking that the long-term economic benefits of green energy, absolute truths in wind power nations such as Denmark, outweigh the current economic sink that is carbon power.
The Carbon Tracker Initiative has weighed in as well, stating that the estimation of loss may several trillions greater. They cite the death of carbon giant Peabody Energy, whose entire net worth dropped dramatically from millions to nothing. The prospect for such companies, especially if they continue to invest in an energy resource that is inherently limited. The transition from carbon to green may be difficult, but the emphasis remains on the long-term investment. The World Economic Forum has even come out stating that climate change is the greatest threat to economic security in 2016.
The steady destruction of assets won’t just affect corporate bigwigs, as destruction of property by natural disaster has more than proven the high stakes of property damage. Imagining more consistent losses may be a more pressing motivation for reform, but the fact is that no financial asset will remain undamaged by climate change if it chooses to remain within the carbon sector. It’s been seen in the last decade that a lack of money, and quick loss of it, guts economic growth. The consistency of this fact has been apparent for generations, but perhaps the only way to create ripples is to watch the storm on the horizon.