'Flawed advice': Economic models accused of 'chronically underpricing' climate risks

James Murray
clock • 7 min read
In February 2021 Indonesia's capital Jakarta was hit by severe monsoon floods that forced more than 1,000 residents to evacuate / Credit: Unicef
Image:

In February 2021 Indonesia's capital Jakarta was hit by severe monsoon floods that forced more than 1,000 residents to evacuate / Credit: Unicef

New analysis from Carbon Tracker warns governments and businesses are continuing to ignore systemic climate risks that could crash global economy

The economic models used by governments, central banks, investors, and businesses are routinely under-playing climate-related risks that are set to intensify as the world moves past the 1.5C warming threshold...

To continue reading this article...

Join BusinessGreen

In just a few clicks you can start your free BusinessGreen Lite membership for 12 months, providing you access to:

  • Three complimentary articles per month covering the latest real-time news, analysis, and opinion from Europe’s leading source of information on the Green economy and business
  • Receive important and breaking news stories via our daily news alert
  • Our weekly newsletter with the best of the week’s green business news and analysis

Join now

 

Already a BusinessGreen member?

Login

James Murray
Author spotlight

James Murray

View profile
More from James Murray

As energy bills fall, is the government's clean power mission starting to pay off?

Climate co-operation is in every nation's self-interest

More on Risk

Study: One-in-nine new homes built in England's flood-risk areas
Risk

Study: One-in-nine new homes built in England's flood-risk areas

Insurance giant urges government to publish flood data and strengthen planning laws, warning that number new homes at risk of flooding could reach one-in seven by 2050

Stuart Stone
Stuart Stone
clock 18 February 2026 • 6 min read
Rising pest risks: How the Met Office is helping to safeguard UK crops
Risk

Rising pest risks: How the Met Office is helping to safeguard UK crops

With climate change driving up temperatures new pests are increasingly becoming established in the UK, which the Met Office warns poses a growing threat to agriculture and forestry

Ashleigh Ellwood, Farmers Guardian
clock 16 February 2026 • 2 min read
How can businesses build the investment case for climate resilience?
Risk

How can businesses build the investment case for climate resilience?

BusinessGreen's latest Spotlight webinar brought together a raft of top experts to explore how companies can better understand looming climate impacts and build the business case for adaptation investment

Stuart Stone
Stuart Stone
clock 16 February 2026 • 10 min read