As Europe emerges from the grip of a heat wave - its worst on record - the reality of climate change is getting uncomfortably close. This is a uniquely human challenge, but solving it will require some deft mathematics.

Climate change poses a severe economic challenge to our future. Aside from direct losses due to floods, earthquakes and droughts, there are potentially substantial losses involved in financing the green revolution. Not only does capital need to be allocated for new technologies to reduce emissions, but there may be losses arising from existing capital investment in infrastructure and assets that are no longer needed. All will involve a massive reallocation of financial flows...

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