Limiting global waeming to 2ªC: a carbon stress test of the dutch financial sector

Recent breakthroughs in the policy environment of climate change shifted the paradigm for companies engaged in the fossil fuel value chain. Policy “shocks” with respect to the regulation and pricing of carbon emissions may accelerate the carbon transition, thereby causing harm to those companies whose business model is still centred around oil, gas and coal. The financial sector is exposed to the fossil fuel industry primarily via equity holdings, bonds and loans. Using a DCF analysis based on the 450 Scenario of the International Energy Agency and a pricing formula for bonds, a carbon stress... Mehr ...