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How #ClimateChange could trigger a financial crisis: "Risks include potential loan losses at banks resulting from the business interruptions and bankruptcies caused by storms, droughts, wildfires, and other extreme events." marketwatch.com/story/how-clim… 
"There are also transition risks associated with the adjustment to a low-carbon economy, such as unexpected losses in the value of assets or companies that depend on fossil fuels. Long-term risks can have near-term consequences as investors reprice assets for a low-carbon future.
"Furthermore, financial firms with limited carbon emissions may still face substantial climate-based credit risk exposure, for example, through loans to affected businesses or mortgages on coastal real estate. - @SFFed frbsf.org/economic-resea…
"If such exposures were broadly correlated across regions or industries, the resulting climate-based risk could threaten the stability of the financial system as a whole and be of macroprudential concern.
"In response, financial supervisory authorities in a number of countries have encouraged financial institutions to disclose any climate-related financial risks and to conduct 'climate stress tests' to assess their solvency across a range of future climate change alternatives."
"Some central banks also recognize climate change is becoming increasingly relevant for monetary policy. For example, climate-related financial risks could affect the economy through elevated credit spreads, greater precautionary saving, and, in the extreme, a financial crisis.
"There could also be direct effects in the form of larger and more frequent macroeconomic shocks associated with infrastructure damage, agricultural losses, and commodity price spikes caused by droughts, floods, and hurricanes amplified by climate change." marketwatch.com/story/how-clim…
