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Carbon Bubble May Wipe $2.5 Billion Out of Polish Pension Funds

  • Polish pension funds face bigger risk than their EU peers
  • Study on carbon bubble commissioned by Greens in EU Parliament

The five largest pension funds in Poland may lose 4.2 percent of their assets if the European Union moves quickly toward clean energy sources and a “carbon bubble” of overvalued fossil fuel investments bursts.

The loss would amount to 2.3 billion euros ($2.5 billion) on 53.7 billion euros assets by funds owned by ING Groep NV, Aviva Plc, PZU SA, MetLife Inc. and AXA SA, according to a study commissioned by the Greens group in the European Parliament. That compares with an average weighted loss of 2.5 percent pension funds across the region, under the same shock scenario, the Amsterdam-based Profundo consultancy said in the research paper.