The founder and CEO of Blackrock, Larry Fink, makes an economic argument in his annual shareholder letter.

He writes of the deepening understanding of how climate risk will impact both our physical world and the global system that finances economic growth.

"Will cities, for example, be able to afford their infrastructure needs as climate risk reshapes the market for municipal bonds? What will happen to the 30-year mortgage – a key building block of finance – if lenders can’t estimate the impact of climate risk over such a long timeline, and if there is no viable market for flood or fire insurance in impacted areas?"

He predicts that in the near future there will be a significant reallocation of capital.

BlackRock will for example abandon coal production.

Recently Goldman Sachs announced similar plans and said they will not fund new coal projects.

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