Risk management approach to climate change vital to tackle ‘ruin scenario’ – report

Global society is heading towards a ‘ruin scenario’, even under the current targets set out in the Glasgow Pact, according to a new report by the Institute and Faculty of Actuaries written in collaboration with The Climate Crisis Advisory Group.

The report calls for policymakers and stakeholders to take a risk management approach to identify, measure and mitigate the effects of further temperature rises. It says this will support the broader effort to build resilience and climate adaptation into national and international systems as extreme events become more frequent.

The report sets a number of key findings, including a recommendation that climate change now needs to be seen as a risk management problem given that catastrophic outcomes from climate change are now inevitable. It says that policymakers need to have a degree of climate and risk literacy as they plan for an uncertain future.

It also warns that carbon budgets should be treated with caution when planning for long term sustainable investment, adding that large margins for error and ‘no surprises’ assumptions are a source of undue confidence in carbon budgets, which have only a 50% chance or less of hitting the 1.5°C target.

See the next issue of CIR Magazine for more on this story.

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