94 karma · joined May 30, 2022
Another deduction can be - this reality was known to Europe and the West in general (deep fossil dependence on Russia) and the trade offs that would arise if a war started - still the war happened. It is not impossible to believe that this war could have been avoided.
For better context, Vietnam population is 97million.
The authors used their analysis to figure out who ultimately owns these stranded assets - for example, managed funds, creditors, pensions and banks. They then propagated the effect of losses in asset valuation throughout the financial system of ownership. They found that in only a medium re-alignment of asset valuations, financial companies would face $681 billion of losses.
It turns out that once propagated through the finance industry, majority of these losses will be experienced by the UK and US - see the chart in the link.
So what does it mean? Either,
(a) Oil and gas fields remain at their current valuation, which is consistent with >3degrees of warming (immeasurable suffering all around) OR
(b) We decide to tackle climate change, i.e. oil and gas assets are currently mispriced and will re-align, sending shockwaves through financial portfolios and causing huge losses. Unfortunately not just for big financial institutions but for most individuals with a pension or investments.
There are nuances to the above of course. Great paper overall - Must Read.
Have tried to share some thoughts on this here, have a look if you like