Climate: Transition Risk beyond the physical
21 March 2022
Climate Transition Risk is often overlooked by the mainstream media in favour of the more headline grabbing Physical Risk stories. Transition Risk is also little understood by the general population outside of those in climate change related industries. Here we examine some of the risks and opportunities that will result from the transition to a low carbon economy and focus on the transmission channels of those risks.
We also explore the political risks associated with climate transition policy which could ultimately determine the pace of change. We make the case that moving from a policy driven to a technology driven transition would provide the more desirable pathway, but this could be unintentionally hindered by well-meaning transitions policies.
Rather than Transition Risk, could the Risk to Transition, be the real factor of concern.