To try and avoid the most catastrophic impacts of climate change, 190 countries have committed to limiting global temperature increase to below 2°C. To achieve this, 60-80% of the world’s existing carbon or fossil fuel reserves need to stay in the ground. Nevertheless, billions of dollars of investments in coal, oil and gas have gone ahead, resting on the speculative bubble of climate change denial or delay. If these assets become stranded by climate action, their revaluation could trigger the next (larger) global financial crisis. So, what’s at risk? Our economy and your retirement savings. Australia’s economy depends on coal exports and around 55% of your superannuation is invested in high-carbon, high-risk assets. Our political system looks chronically incapable of dealing with climate change—but can we trust our financial institutions to do better?John Hewson is the former leader of the Liberal Party of Australia and Chair of the Asset Owners Disclosure Project. He has worked as an economist for the Australian Treasury, the Reserve Bank, the International Monetary Fund and also as an advisor to two successive Federal Treasurers and the Prime Minister.John Hewson appears with the support of The Climate Institute.

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