Humans depend on a changing climate and ecology for almost all aspects of economic life—production, trade, food, health, and leisure. Two sets of outcomes will drive changes in global money flows.
The first set of outcomes stems from the actual physical and consequent economic impacts of a warming and less biodiverse planet. These could drive a range of changes including in coastal cities, agricultural areas, fisheries, and trade routes. Though notoriously hard to specify, the longer-term effects could coalesce into one of the greatest economic and social disruptions known to modern society.
Reactions to the prospect of climate change are more important to current money flows in the global economy. Government and private programs to combat global warming are large and growing. Tax breaks, subsidies, renewable energy quotas, and other programs have already caused major changes in global capital flows. People, governments, investors, and companies will continue to react to real and prospective climate change.