Climate change poses a major risk to the stability of the U.S. financial system and to its ability to sustain the U.S. economy, according to a new report from the U.S. Commodity Futures Trading Commission titled Managing Climate Risk in the U.S. Financial System.
The report cautions that if significant action is not taken to check rising global temperatures, climate change could have a profound impact on the productive capacity of the economy.
For the U.S. financial system, climate change could pose disorderly price adjustments in various asset classes, with possible spillovers into different parts of the financial system, according to the report. If climate effects are to be combated, the transition to zero-net emissions also will pose risks to the financial system.
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