The report says that Norway has a good starting point for dealing with climate risk, but that the consequences of serious climate change can be large and washable.
Many types of climate risk
Broadly speaking, one can divide the risks into three groups: one physical risk, one transition risk and one liability risk.
The physical climate risk is the one that is easiest to deal with. When power lines break down in storms and houses are flooded by water, this is the result of acute physical climate risk. It is extreme weather events that can cause great damage both to property and wallet.
More long-term changes in weather that lead us to let us switch ourselves constitute a chronic climate risk. One dying will be if drought and extreme precipitation lead us to change agriculture in Norway.
But climate risk also includes more than the physical consequences of an even climate. It is also about how far we are bidding for a change to a greener society.
The transition risk is based on the fact that different companies and industries are able to meet the technological challenges, the political regulations and the demands of the market. Are we convicted that the petroleum sector should have less value?
Finally, it is the liability risk. Who will take the bill for the eye delusions as coming from climate change and extreme weather? Is it the insurance company? Is it the municipality that allowed anyone to build houses a place that goes downhill? Or do you even sit sitting with your beard in the mailbox?
But what risk factor is most important for Norway?
Martin Skancke says that the time course for the risks is different. The transition risk will hopefully increase within a few decades. What happens to the oil sector now is not what will determine the quality of life of the children that hosted today and their grandchildren, he says.
– Around 2200, the physical effects will be totally dominant, says the leader of the climate risk selection.
Dei will notice the consequences of devastated homes that are fleeing people, changing food prices, and increasing international conflict levels.
A good starting point is not enough
Because even Norway has a good starting point, so it also needs action to ensure that this goes the right way.
All municipalities, companies, consumers and producers have to decide on the question: how well do I rest on climate change, and how can it affect my day?
The climate risk selection therefore calls for the work on climate risk to settle in the system, and recommends getting inspiration from a set of guidelines that already exist, Task Force on Climate-related Financial Disclosures (TCFD).
The key is that one should turn climate thinking on the head: It is not enough to think about how one’s own activity affects the climate, by means of climate reporting on CO2 emissions. Now let’s also think about how climate change and climate policy affect one’s own, the companies and the industries in the country.
– Tell me how to make money if we close with climate policy, says Skancke.