International Finance Corp. and Climate Change

fossil fuels: There is increasing debate about the impact of climate change on investments, particularly in fossil fuels, according to The Japan Times. A study by consultants Mercer — backed by the International Finance Corp., the World Bank private sector arm, and British and German government development units — modeled a range of outcomes on the impact on a range of assets and sectors out to 2050 under four temperature change scenarios. Government officials are meeting in Germany this month to work on a global deal to cut greenhouse gas emissions due to be agreed in six months’ time in Paris. For good or bad, climate change would impact investment returns, and ignoring it was not a savvy option, the report said, although for long-term diversified investors, a 2-degree Celsius temperature increase would not result in negative returns. It can also send a clear message to policymakers that resolving the uncertainty around the policy direction of carbon pricing will be an important first step toward transitioning to a low carbon economy, he added. This new study led by Mercer could not be more timely on the road to the U.N. Climate Change conference in Paris, said IFC Director for Climate Change Christian Grossman. (news.financializer.com). As reported in the news.