What did they expect in a 3C world?

Günther Thallinger, board member of German insurer Allianz SE, wrote on LinkedIn:

Once we reach 3°C of warming, the situation locks in. Atmospheric energy at this level will persist for 100+ years due to carbon cycle inertia and the absence of scalable industrial carbon removal technologies. There is no known pathway to return to pre-2°C conditions. (See: IPCC AR6, 2023; NASA Earth Observatory: “The Long-Term Warming Commitment”)

At that point, risk cannot be transferred (no insurance), risk cannot be absorbed (no public capacity), and risk cannot be adapted to (physical limits exceeded). That means no more mortgages, no new real estate development, no long-term investment, no financial stability. The financial sector as we know it ceases to function. And with it, capitalism as we know it ceases to be viable.

Yesterday I wrote about Wall Street “expecting” a 3C world. When analysts published these research notes, did they ever pause to ponder what it meant for the existence of their industry? Well, at least their long position on air-con stocks can beat the market.