(Reuters) - Infrastructure investors face losing nearly a third of their money, or around $600 billion, if countries do not plan for an orderly shift to a greener economy by mid-century, a first-of-its-kind study shared with Reuters showed.
The researchers describe this worst-case scenario in terms of governments moving late, or unexpectedly, to impose taxes on carbon emissions. Those abrupt moves would drive an inflation-fuelling price shock that would see interest rates rise, impacting the net-asset value of the investments.
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