Financing the Transition: How Climate Change Could Impact the Financial System - Thought Piece for the UK’s Financial Conduct Authority (FCA)

This paper presents a fictional Fast Track scenario, suggesting the key features of how a rapid transition to a low-carbon, resilient economy could play out in the financial system in terms of impacts on assets as well as on financial policy. This scenario helps to challenge some of today’s assumptions, notably that climate disruption is distant in time, largely driven by developed countries, has limited implications for financial authorities and is set apart from questions of financial culture and conduct.