Essay about "Why climate change could lead to a financial crisis (and what we can do about it) | CNBC Reports"

https://youtu.be/gdhekYExFh8

 This review essay may contain some errors about the objective truth. Also, this review essay is completely written by myself. Therefore might have a biased opinion. Please tell me if this essay includes some errors about the objective truth. Also, I like to hear your idea about my opinion. Please leave them in the comment. 

Climate change is expected to make a huge financial crisis. 

There are many examples to support this statement.

One of the statements is that when hurricane Katrina swept the U.S.A in 2005, about 300,000 homes had destructed, and also oil production rate decreased about 19%. 

Due to the expected risks of climate change, the next big financial crisis will be caused by climate change. 

For example, if climate change makes a huge tsunami or hurricane, it will destroy many real estate assets including houses. From the statistic included in the video, about 50% to 80% of the houses are uninsured even though it was bought including mortgages. 

It means, if the houses are sunk due to natural disasters like flooding, banks that lent the money to the house owners won't get their money back since the lender can't pay back stably. 

To solve this situation, many countries agreed with the importance of climate stability and joined some agreements. 

The first one is that government promotes society to be climate-friendly. Inducing enterprises to get the benefit when they make their products climate-friendly and get losses if not. For example, if the government stimulate climate-friendly society on the mobility section including car, many cars will be electric using car instead of gasoline as their energy. Then, companies that make gasoline cars will get losses since many social infrastructures and social policies will be profitable to the climate-friendly ones. Like gasoline station will be replaced with the electric station and a lot of compensation will be allocated to the electric cars. 

The second solution s carbon tax. Carbon is known as the key material that hurting the environment and having a negative effect on the human-friendly climate. Therefore, the governments of the world try to impose taxes on the companies that produce carbon over the criteria. These policies of the world's governments are leading companies to produce less carbon. 

Also, there are other efforts to make the climate more human-friendly and stable. European unions had a green deal that promising their carbon-producing rate to 0% until 2050. Japan, Canada, and even China also made some kinds of announcements and policies to support their words. 

About these kinds of efforts, I think it is very helpful and effective to the world's climate stability and nature. This will definitely help our lives better and halt the next gigantic financial crisis. 

Additionally, to cease the financial crisis induced by climate change, I think we human species should put efforts into the industrial area more than the civil area since the industrial section produces much more waste and carbon compared to the civil section. 

Thanks. 




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