IPCC_AR5__Implications_for_Investors__Briefing__WEB_EN

KeyFindingsClimate change will affect all sectors of the economy, and isrelevant to investors and financial institutions. However, not allmacroeconomic changes and microeconomic conditions will applyequally to all investments.There are risks and opportunities associated with policy measuresdirected at reducing greenhouse gas (GHG) emissions. To meetthe internationally agreed target of keeping the global averagetemperature rise since pre-industrial times below 2°C, patternsof investment will need to change considerably. This will includesignificant decreases in investment in fossil fuel extraction andconventional fossil fuel-based power generation, and significantincreases in investment in low-carbon energy and energy efficiency.Physical impacts of climate change will affect assets andinvestments. Climate change and extreme weather events willaffect agriculture and food supply, infrastructure, precipitationand the water supply in ways that are only partially understood.Decisions made by private sector investors and financialinstitutions will have a major influence on how society respondsto climate change.There will be significant demand for capital, with governmentslooking to the private sector to provide much of it. To keep theglobal temperature increase below 2°C, additional investmentrequired in the energy supply sector alone is estimated to bebetween USD 190 and 900 billion per year through to 2050 1 ,accompanied by a significant shift away from fossil fuels towardslow-carbon sources such as renewables and nuclear.P4 Climate: Everyone's Business