CleanTechnica•about 18 hours ago
How Climate Economics Got the Risks Wrong
Key Takeaway
The re-evaluation of climate risks by new economic models suggests a faster, more disruptive energy transition, requiring developers and large loads to urgently reassess long-term strategies and investments.
AI Summary
- •New research indicates widely used economic models significantly underestimate climate change risks by smoothing impacts over time, implying more severe and rapid consequences than previously assumed.
- •For developers, this signals potential for accelerated policy shifts towards decarbonization, stricter emissions regulations, and increased scrutiny on long-term fossil fuel asset viability.
- •Large power consumers should anticipate higher future carbon costs, increased physical risks to infrastructure (e.g., extreme weather), and potentially more volatile energy markets as climate impacts intensify.
- •The re-evaluation of climate risks could drive increased investment in low-carbon technologies and influence financing terms and PPA structures, favoring projects with lower climate exposure.
Topics
emissionsfinancingpolicyppa
Article Content
The publication of a new study by researchers associated with the University of Exeter and Carbon Tracker has reopened a debate that many policymakers and economists falsely assumed was settled. The study argues that widely used economic models underestimate the risks of climate change because they smooth impacts over time, ... [continued] The post How Climate Economics Got the Risks Wrong appeared first on CleanTechnica .