Such a sudden transition would imply a discrete loss in the value of installed capital together with an associated drop in asset prices and would be sufficiently disruptive to trigger a general recession (ESRB 2016, Vermeulen et al 2018). Other disruptive transition scenarios include an over-ambitious schedule for carbon taxes, which outpaces the capacity of the economy to switch to low-carbon production techniques.
The good news is, that a growing number of us realises this, and acts upon it. All 54 members of the NGFS. A number that continues to grow fast.