From Eos June 11, 2013, PAGE 215, comes a recommendation that the finance community and climate scientists work together. One wonders though, if people in the results driven financial world will soon realize that the climate models just aren’t performing, and drop such collaborations like yesterday’s bad stock tip.
Collaboration Urged for Climate Science and Finance Communities
Increased coordination and collaboration is needed between the climate science
community and the financial services industry, according to speakers at a 3–4 June
workshop held in Washington, D. C., by the American Meteorological Society (AMS).
The AMS workshop brought together business and financial leaders and climate scientists.
The financial industry needs climate data for a variety of predictions, but there has
been little collaboration between the industry and the climate science community, speakers said.
In a briefing summarizing the conference outcomes, Gary Geernaert, director of the
Department of Energy’s Climate and Environmental Sciences Division, pointed to the variety of climate data needs for different stakeholders. For example, catastrophic event
risk managers may need short- term predictions of extreme weather events, while
reinsurance managers need climate predictions on longer- term time scales. He said that
in some cases, currently available climate change information does not meet the needs
of these stakeholders. In particular, climate models often do not adequately represent the
likelihood of the most extreme events or take into account multistressor events that happen when different weather extremes occur at the same time.
Climate modelers and financial decision makers are different in many ways and do not
often interact, explained Tom Bogdan, president of the University Corporation for
Atmospheric Research in Boulder, Colo. However, “uncertainty, risk, change—these
are not concepts that are alien to financial decision makers,” he said. Variability in the
Earth system, from extreme events to changes in temperature to air quality issues, brings
uncertainty, risk, and change to the financial landscape, he noted. Building relationships
between financial decision makers and climate scientists is key, Bogdan said,
because “you can’t adapt to climate change by googling climate change.”
Full essay here, thanks to Dr. Leif Svalgaard.