‘Decarbonisation’ could allow investors to hedge climate risks, economists say

Low-carbon index can deliver good returns while hedging risk and cutting carbon footprint

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A sudden repricing of climate risk could destabilise markets

Low carbon indexes may offer investors a way to handle climate change risk without sacrificing performance, according to economists speaking at a recent conference.

The conference, held on January 20 by the University of Oslo and funded by Norges Bank Investment Management, sought to fill some of the gaps in understanding of the financial implications of climate change.

The issue is a pressing one for both sovereign wealth funds and central banks. Besides the immediate impact on asset management

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