The world is already warming. According to the World Meteorological Organization, global temperatures are on average 1.1oC warmer than pre-industrial levels1. In winter 2019, temperatures reached maximum highs in Austria, France, the Netherlands and the UK. Similarly, in Hong Kong, both max and min temperatures were the highest on record for January to March2. Climate change is becoming a reality that poses two broad risk types. First, physical risks which are the risks related to natural events associated with warmer temperatures, such as extreme droughts and floods. Second, the transition risks that are associated with reducing emissions as the world moves towards delivering a net-zero carbon economy by 2050. Countries’ capabilities and resources to address such risks differ greatly.
This report by HSBC Global Research ranks 67 countries on their ability to shift from fossil fuels, adapt to climate change and profit from low-carbon technologies. The 67 countries cover 80 per cent of the world's population and 94 per cent of GDP.
2 NOAA Climate Report, Reliefweb-United Nations Offices for the Coordination of Humanitarian Affairs