I came across a Cambridge Report on the economic risks of climate change for investors, entitled Unhedgeable Risk. Its executive summary states:
Factors, including climate change policy, technological change, asset stranding, weather events and longer-term physical impacts may lead to financial tipping points for which investors are not presently prepared.
It also states that only half of the future risks for investors can be accounted for by the overall economic growth. And it states that companies and locations that are expected to be hit by such damage, will undergo early divesting, meaning they might collapse out of mere panic before the actual damage occurs. And that the sooner we act, the higher our long-term economic growth will be. Though acting would compromise growth on the short term. Oh, and of course, that the poor countries will be hit hardest. Yet the Netherlands are not in a great situation either. And oil will fall, just like coal is doing now.
Would the situation remain like this, and there would be little mitigative action, this report says that from now on, investing in climate sensitive funds such as agriculture will become increasingly risky. There will be haphazard damage on investment funds including pensions, ultimately coming down upon the people who payed for it.
I think this shows that indeed, our economy is built as a food web upon the earths resources, but also that a lot needs to happen for this to keep running smoothly. An idea that I like, recently, is the fact that we can ask our own pension funds to divest from oil, which accelerates the downturn of oil. And be quick: the last one out pays the bill.