The Global Climate Legislation Study found that, since 1997, the number of climate change laws and policies has doubled every 4-5 years. While the pace has been levelling off recently, the trend is clear. We have already seen examples of sharp devaluations in the fossil fuel and energy sector. One oft-cited example are the top four US coal producers.
Their combined market capitalisation has fallen by well over 90 per cent since 2010. Listed utility companies in Germany have also seen 3/5  BIS central bankers' speeches  sharp devaluations. These cases are exemplary of the transition risks I am talking about. And they prove that markets can respond well before the fact.