The climate crisis for the financial sector is heavier than the collapse of banks
If the country’s financial sector does not adequately prepare for the imminent loss of the value of fossil fuel assets, the UK could face an economic crisis that could outpace the banking collapse of 15 years ago. The warning came in a report from One For One, a group of climate activists.
The report highlights that the financial world London city He is not prepared for the potential collapse of an economy based on fossil fuels and warns that such a failure could lead to economic disaster.
Why is this important?
As a result of the climate crisis, the value of fossil fuels will drop sharply. After all, the demand for the sector’s products will fall sharply. This threatens to collapse prices. If the City of London does not adequately prepare for this collapse, the UK could lose 500,000 jobs and have to spend £674 billion of taxpayers’ money bailing out its banks, according to One for One.Worse than the banking crisis: According to the One for One report, the financial consequences of this collapse could outweigh those of the banking crisis fifteen years earlier.
- At the time, the British government had to bail out major lenders such as the Royal Bank of Scotland and Lloyds Banking Group. This banking crisis will ultimately cost the UK around £560 billion.
- The report shows the risks that may arise when d
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