That will make it far easier for firms and households to determine the future value of their assets and liabilities. This will alter their incentive framework. Then, market forces will drive things in the right direction. This ball lies squarely in the court of governments.
The EU Green Deal sets out ambitious plans to make carbon pricing more effective, and it is crucial these plans are not watered down. This is the one thing that makes all the other things that we do, much more effective. Secondly, investors and the financial sector need clear and credible transition plans from governments.