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Read Calculating Climate Change: Introducing NGFS and its climate change scenarios, the first in QIC’s series of papers exploring the economic impacts of the six climate change scenarios of the NGFS, and what this may mean for institutional investors.
Listen to our Calculating Climate Change podcast for more.
It is well understood that climate change presents increasingly complex challenges to navigate and significant risks to mitigate. Further, QIC recognises that the energy transition and decarbonisation presents attractive opportunities for investment. In the first paper in our Calculating Climate Change series, QIC takes a close look at the Network for Greening the Financial System (NGFS) and the economic impacts under its climate change scenarios.
What is NGFS?
NGFS is a group of central banks and supervisory authorities from the world's major economies that integrates the impacts of climate change on the global economy using a number of large-scale models. NGFS presents six climate change scenarios, broadly categorised as Orderly, Disorderly and Hot House World scenarios, with each representing trade-offs between physical risks (which dominate in the long term) and transition risks (which dominate in the near term). NGFS macroeconomic modelling is undertaken by the National Institute of Economic and Social Research (NIESR) using its global macroeconometric model, NiGEM.1 As advanced users of NiGEM, QIC is well-placed to work with clients to understand how the modelling might be interpreted for their specific investment considerations.
Citations
- Sourced at: www.ngfs.net/en