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Scientists warn over misuse of climate models in financial markets
Reuters ^ | February 8, 2021 | By Matthew Green

Posted on 02/08/2021 9:13:31 AM PST by Oldeconomybuyer

LONDON - Misuse of climate models could pose a growing risk to financial markets by giving investors a false sense of certainty over how the physical impacts of climate change will play out, according to the authors of a paper published on Monday.

With heatwaves, wildfires, massive storms and sea-level rises projected to intensify as the planet warms, companies are under growing pressure to disclose how the disruption could affect their businesses.

But the authors of a peer-reviewed article here in Nature Climate Change warned that the drive to integrate global warming into financial decision-making had leap-frogged the models used to simulate the climate by "at least a decade".

“In the same way that a Formula One Grand Prix car is not what you would use to pop to the supermarket, climate models were never developed to provide finessed information for financial risk,” said Andy Pitman, a climate scientist at the University of New South Wales and a co-author of the paper.

Improper use of climate models could lead to unintended consequences, such as “greenwashing” some investments by downplaying risks, or hitting the ability of companies to raise debt by exaggerating others, the authors said.

The problem is that existing climate models have been developed to predict temperature changes over many decades, at global or continental scales, whereas investors generally need location-specific analysis on much shorter timeframes.

Neither are climate models designed to simulate extreme weather events, such as storms, which can cause sudden financial losses.

To bridge the gap, the authors called for the development of new forms of climate projection to support the financial sector, backed by “climate translators” qualified to help regulators, investors and companies make better use of the science.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: climate; globalwarming; hoax; models; propaganda; socialism

1 posted on 02/08/2021 9:13:31 AM PST by Oldeconomybuyer
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To: Oldeconomybuyer

Obviously, we have located a group of scientists with holdings in the stock market. They realize that the models are doing their magic by scaring people into submission, but the models are NOT intended to mess with the stock market!


2 posted on 02/08/2021 9:16:51 AM PST by the_Watchman
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To: Oldeconomybuyer
Kind of like what Randolph and Mortimer Duke wanted to do?
3 posted on 02/08/2021 9:17:06 AM PST by OttawaFreeper ("The Gardens was founded by men-sportsmen-who fought for their country" Conn Smythe, 1966 )
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To: Oldeconomybuyer
Hmmmm, seems these climate alarmists realize that there is a cost to the alarmist policy. "Stop killing the planet...but wait, you dont need to stop contributing to my investment firm..."

Dangerous idiot ideologues

4 posted on 02/08/2021 9:18:03 AM PST by Magnum44 (...against all enemies, foreign and domestic...)
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To: Oldeconomybuyer
...because the climate models are fake and in the margin of error.

If there were human caused climate change, investment in Canadian and northern US state agriculture would be good idea with longer growing season, disinvestment in coastal areas a good idea to avoid flooding. Ah, but no flooding, else Obama himself is a denier since he reportedly spent $17 million for a beachfront mansion.

5 posted on 02/08/2021 9:19:24 AM PST by Reno89519 (Buy American, Hire American! End All Worker Visa Programs. Replace Visa Workers w/ American Worker)
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To: Oldeconomybuyer

The GND is an existential threat to the US.


6 posted on 02/08/2021 9:19:38 AM PST by Paladin2
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To: Oldeconomybuyer
To bridge the gap, the authors called for the development of new forms of climate projection to support the financial sector, backed by “climate translators” qualified to help regulators, investors and companies make better use of the science.

Thus, the religion of climate change creates a "priesthood" to guide the illiterate in the ways of Gaia. They shall be called "climate translators".

7 posted on 02/08/2021 9:20:05 AM PST by the_Watchman
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To: Oldeconomybuyer

obama purchased a $16 million beach front vacation home.

That’s all you really need to know.


8 posted on 02/08/2021 9:21:01 AM PST by 2banana (Common ground with islamic terrorists-they want to die for allah and we want to arrange the meeting)
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To: Oldeconomybuyer; All

Manufacture a crisis and follow the money.


9 posted on 02/08/2021 9:22:19 AM PST by Amendment10
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To: the_Watchman
They shall be called "climate translators".

And they shall be very very expensive.

10 posted on 02/08/2021 9:24:01 AM PST by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Oldeconomybuyer
With heatwaves, wildfires, massive storms and sea-level rises projected to intensify as the planet warms, companies are under growing pressure to disclose how the disruption could affect their businesses.

Fear & lies sell. Especially something that is a myth.

11 posted on 02/08/2021 9:26:20 AM PST by unixfox (Abolish Slavery, Repeal the 16th Amendment)
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To: Oldeconomybuyer

The big problem that they forget to mention is the “s”.

If it were actually modeled correctly and usefully, there would only be one climate model that everyone would use and could verify it’s accuracy independantly.

The simple fact that there is more than one demonstrates that climate modeling is nothing more than an area of current research.

So, since climate models do not accurately model climate, it would be flat out stupid to consider any of the climate models as an input to another system, like a financial or economic model.

As a final note, multiple models are not a general indication of unreliability, as long as the models are defined in context, e.g., we have two models for gravitation - Newton’s, which works well in relatively small scale inertial reference frames, and Einstein’s, which is more accurate for large scale and/or non-inertial reference frames.

But when it comes to climate, they simply don’t know what they’re talking about, model wise. We’re not there yet and actually not even close to modeling the climate.


12 posted on 02/08/2021 9:52:34 AM PST by fruser1
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To: Oldeconomybuyer

Climate models can’t even reliable predict climate that has already happened. But trust the science. Even though they have been wrong for the past 100 years, they’re right this time. We’re all doomed for reals now. Trust the science.


13 posted on 02/08/2021 10:33:50 AM PST by Organic Panic (Democrats. Memories as short as Joe Biden's eyes.)
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To: Oldeconomybuyer

False sense of certainty? I thought the science was settled and you’re a racist, bigot, cis-genered white supremacist if you think otherwise.


14 posted on 02/08/2021 11:19:58 AM PST by chrisser
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To: Oldeconomybuyer

The Climategate email release proved the computer “models” for the past 20 years have been so tortured to create the results the Mother Earth worshipers want that there IS no mathematical basis for it.


15 posted on 02/08/2021 11:51:34 AM PST by tbw2
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