Climate change has become a critical consideration for investors. Two major geo-economic developments are key: the likely economic impact of climate change and the societal consequences of climate change, such as famine, migration, and strife.
Chapter 9 of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments focuses on one of the most pressing global challenges for politics and humankind alike: climate change. Climate change is already triggering more intense and more frequent extreme weather events—cyclones, floods, and droughts—than in the past. And these extreme weather events have a rapidly rising impact on the economy of the affected regions. As climate change progresses, investors need to deal with two major geo-economic developments: the likely economic impact of climate change and the societal consequences of climate change, such as famine, mass migration, and civil strife.