Carbon Bubble

Assessing carbon risks in the German economy and the German financial sector

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Project summary

The German government by means of the German Environment Agency (UBA) has commissioned Ecofys, the University of Oxford (Smith School of Enterprise and the Environment), Triple A Risk Finance, the Global Climate Forum, the University of Zurich (Finexus) and Germanwatch to analyse and evaluate the risk of a ‘carbon bubble’ in the German financial system.

The goal of the study is (1) to assess the carbon risks in the German economy, (2) to conduct a carbon stress test for German financial institutions and (3) to develop regulatory instruments to mitigate carbon risks in financial markets in Germany and beyond.