TAILIEUCHUNG - INVESTMENT AND FINANCIAL FLOWS TO ADDRESS CLIMATE CHANGE

The purpose of this paper is to evaluate if financial asset prices and, in par- ticular, sectoral stock prices can help to predict real economic growth. Earlier studies that have examined the predictive content of stock prices have employed broad-based indices. However, there are reasons to believe that some sectors making up the stock indices are more closely linked to the business cycle than others. The intuition for this is given by Browne and Doran (2005), ”the return from industry groups whose profits are likely to be pro-cyclical relative to the share price of the industry group whose profits are likely to be a-cyclical should be a good. | United Nations Framework Convention on Climate Change INVESTMENT AND FINANCIAL FLOWS TO ADDRESS CLIMATE CHANGE UNFCCC UN FCCC United Nations Framework Convention on Climate Change INVESTMENT AND FINANCIAL FLOWS TO ADDRESS CLIMATE CHANGE UN FCCC INVESTMENT AND FINANCIAL FLOWS TO ADDRESS CLIMATE CHANGE FOREWORD The spectre of climate change that is unfolding now is undeniably a cumulative impact of anthropogenic interference in the climate system over the last two centuries. The science is clear and the policy community is being increasingly convinced and galvanised into action to address this emergent challenge in light of the associated economic and human dimensions. The impacts of climate change ranging from sea level rise melting ice caps and glaciers severe weather events drought flooding warming subtle changes in ecosystems -will impinge on every aspect of society and economic life. The costs of inaction will more than outweigh the costs of action. There is only a narrow window of opportunity to redress the situation. The Intergovernmental Panel on Climate Change IPCC in its Fourth Assessment Report has underscored that mitigation efforts in the next 15-20 years will have a large impact on opportunities to achieve lower stabilization levels and have the potential to minimize major climate change impacts. Failure to mitigate now through modifications in development pathways will lock the world into scenarios of emissions implying more adverse climate change impacts thereby leading to higher costs for adaptation. Underpinning this urgent need to modify development and emission pathways is the role of technology and additional financing and investment. In recognition of the relevance and importance of the financing and investment dimension the Parties to the United Nations Framework Convention on Climate Change UNFCCC requested the Secretariat to analyse and assess investment flows that will be necessary to address climate change mitigation and adaptation in an .

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