These scenarios are associated with higher transition risk as, for instance, carbon prices might need to rise sharply and abruptly. In the hot house world scenarios, global warming cannot be limited due to insufficient global efforts. As a result, extreme weather events become more severe and more frequent. Physical risks increase drastically.
All these NGFS scenarios help quantify the economic impacts of different emission and policy pathways. They show that both climate change and policies to contain it come at a price. But taking ambitious climate action too late or failing to act altogether would be much more costly in the end.