Carbon Bubble – Analyses, economic risks, measures and instruments

Conditions for investment in climate protection are quite favorable. Nevertheless, financial resources continue to flow into fossil energy sources. This is accompanied by risks. To assess these risks, UBA has had a method developed which allows financial institutions to roughly estimate transitory climate risks. Simulating the economic development of certain key industries shows that climate risks are expected to increase in the year 2030. This goes hand in hand with increasing financing costs of activities that involve high environmental risks while ecologically sustainable investments are getting financially more attractive.