Climate change could trigger the next systemic financial crisis, calling into question the role of central banks in reducing risks, the Bank for International Settlements warned in a report. Receive daily email alerts, subscriber notes & personalize your experience. Register Now That’s because limiting global warming to less than 1.5 degrees Celsius requires keeping a large proportion of existing fossil fuel reserves in the ground — creating potential risks for the valuation of fossil fuel production companies and the wider financial system. “As the risk related to stranded assets is not reflected in the value of the companies that extract, distribute and rely on these fossil fuels, these assets may suffer from unanticipated and sudden writedowns, devaluations or conversion to […]