Economics

Unpriceable Climate Change Stalks $31 Trillion Debt Market

  • Funds have no way to map climate impact on government bonds
  • Models for green bonds don’t work across entire economies

Workers pick Pinot Meunier grapes from a vineyard in Sussex, U.K.

Photographer: Simon Dawson/Bloomberg

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When English vineyards started producing sparkling wine that aficionados lauded as a rival to Champagne, Jack McIntyre took note.

“England was suddenly growing grapes that typically grew in warmer climes,” said McIntyre, a three-decade investment veteran at Philadelphia-based Brandywine Global Investment Management. “No doubt temperatures are rising -- how you properly price climate change in rates markets though, I have no answer for yet.”