A carbon shock for the global financial system

As large swathes of the Australian landscape continue to burn, the world’s central bankers have hit the panic button.

The IPCC has warned the global coal industry must virtually
shut down by 2030 to prevent catastrophic climate change.

The usually calm and measured overlords (and a few ladies) of the global financial system – who, it must be said, failed to predict the last major financial crisis – warned this week that we may be staring down the barrel of a climate change-induced financial crisis.

A paper released by the Bank for International Settlements warned central banks may soon be forced to step in as a buyer of last resort for “stranded assets” amid a widespread writeoff in the value of carbon-intense assets.

As if we weren’t jittery enough already. You can now add watching the world’s entire financial system go up in flames to your worries list.

Read the story from The Age by Jessica Irvine - “A carbon shock for the global financial system.”