The latest data on temperature and sea level rises confirm that climate change continues to advance,. Despite reduced emissions from both the EU27 and the US, global emissions growth continues. These trends might push the Paris accord target of 1.5 degrees by 2050 out of reach when we consider all industries and countries.
Given data limitations on physical climate hazards, our current European assessment of climate impact focuses on an updated transition risk premium estimate. As before, this risk premium reflects how much investors should be compensated for this specific climate-related market risk.
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