Financial


Financial Impact of Climate Change

 

The UK Treasury recently commissioned a high profile review of the economic impact of Climate Change - the Stern Review, available here:

 

 

This report estimated that:

 

 

In a directly insurance context, in an extremely detailed and widely cited paper published in 2005 titled "Financial Risks of Climate Change" and available here

 

 

the ABI (Association of British Insurers) estimated that:

 

Under the so-called High Emissions scenario developed by the 3rd Intergovernmental Panel On Climate Change (IPCC) Report, which estimated a doubling of carbon dioxide concentrations by 2080:

 

 

(all the above figures are in 2004 prices and are based only on a projected increase in windspeeds of cyclones and frequency of European storms. They ignore the current socio-economic trends such as increased costal development and rising asset values which substantially increase exposure to extreme storms)