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IPCC's urgent call for climate action may increase credit risks: Moody's

Jovi Ho
Jovi Ho • 4 min read
IPCC's urgent call for climate action may increase credit risks: Moody's
“Existing fossil fuel assets, like infrastructure, unburnt reserves and new investments, are at high risk of becoming stranded.”
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If years of warnings from climate scientists have made for a panicked cacophony, then the latest report from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) is surely the death knell.

IPCC scientists say it is “now or never” to limit global warming. All sectors and regions must reduce greenhouse gas emissions and pollution must peak “at the latest before 2025” in order to limit global warming to 1.5°C above pre-industrial levels, reads the April 4 IPCC report.

Known formally as the IPCC Working Group III Report, Climate Change 2022: Mitigation of Climate Change, the 3,000-page report states emissions must decrease 43% by 2030, while methane emissions must be reduced by over a third from current levels.

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