EU Markets Watchdog Targets Climate Risk at Clearing Houses - Bloomberg Law
EU Markets Watchdog Targets Climate Risk at Clearing Houses
Europe’s markets regulator has told
The European Securities and Markets Authority is conducting stress tests of central counterparties this year, and as part of that “we plan to collect a set of climate-related scenarios already developed by by CCPs,” interview published on the website of the
As extreme fires, droughts and floods underscore the force of climate change, it’s increasingly ...
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”