Climate change a financial risk, says APRA

One of Australia's financial regulators has explicitly addressed for the first time the topic of financial risk created by global warming. 

An executive board member of the Australian Prudential Regulation Authority (APRA), Geoff Summerhayes, in a speech yesterday that APRA now views climate change as a 'here and now' risk. 

It made the recommendation due to three main influences: the Paris climate agreement, recommendations by the G-20 Financial Stability Board, as well as a legal opinion issued late last year. 

APRA says it expects big companies to carefully consider these risks, warning that company directors could be liable if they fail to do so.

Listen to the Radio National report - “Climate change a financial risk, says APRA.”

Global momentum on climate change will leave many Australian assetts stranded

B

illions of dollars of investments in Australia's fossil fuel industries are at risk of becoming white elephants as global momentum builds to address climate change.

As Fairfax Media today begins a series examining climate change policies and politics, experts have spoken out about the growing financial risk posed by investments in fossil fuels.

They say it is now likely the nation will be lumbered with costly unviable assets, especially in coal, as major economies take action to limit global warming to 2 degrees Celsius – an undertaking endorsed this month by G7 nations.

It is claimed that the cost of over-investment during the recent mining boom may already outweigh what would have been the cost of Australia's share in climate action to 2050.

Read the Sydney Morning Herald - “Climate Change: Australia set to be lumbered with cost stranded assets”.