<\/ins> <\/div>\nPhysical Risks<\/strong><\/p>\nThe study also looks at the so-called physical risks from climate impacts, or the damage done to infrastructure by fires, floods or typhoons.<\/p>\n
Without government action to reduce emissions and control climate change, the study finds that the net-value of assets would fall overall by some $140 billion by 2050 and would impact every sector, albeit unevenly.<\/p>\n
Investors face a risk of 25% net-asset-value loss in North American infrastructure, and 16% for European and Asian assets.<\/p>\n
Crucially, infrastructure assets in all regions and countries already face a drop in value of 1% to 5% this year \u2013 and that level of risk would remain even in an orderly transition scenario.<\/p>\n
There are no signs that this orderly transition is happening, he said.<\/p>\n
Blanc-Brude said institutions have proven \u201cincapable\u201d so far of changing how they work, for example by assessing and reporting their financial risks in full.<\/p>\n
The difficulty for investors is that \u201cit\u2019s either really bad \u2013 or even worse, because if you do decarbonise it\u2019s going to cost a lot, and if you don\u2019t it\u2019s going to cost even more,\u201d Blanc-Brude said. \u201cThere\u2019s no good version of the story, so it\u2019s difficult for an organization.\u201d<\/p>\n
Bailing out of infrastructure assets was not the solution, either, he said, as every asset class would be hit: \u201cInfrastructure can be made more resilient, whereas it\u2019s not necessarily that obvious for other types of businesses.\u201d<\/p>\n
(Reporting by Katy Daigle and Simon Jessop; editing by Alex Richardson)<\/p>\n<\/p><\/div>\n
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