🚢 Overly-sunny economic forecasts mislead the financial system into a climate financial storm🌪️

A new report by @carbontracker.bsky.social & @exeter.ac.uk warns models miss #GreenSwan shocks.

Regulators must act now – before a #climateMinsky moment hits 👉 www.finance-watch.org/blog/mislead...

Economic models ignore key risk drivers. To avoid a #climateminsky moment, prudential authorities can:
✅ Use qualitative #climatescenarios & reverse stress tests
✅ Apply stronger capital requirements for high-risk assets.

Read our paper 👉 www.finance-watch.org/policy-porta...
#ClimateLTV