Why does the ICJ teacher put the financial markets in the notice

It is controlled by the company’s profit season and the American president Donald Trumponce again Customs tariff policyInvestors have been greatly ignored Historical climate rule From the Supreme Court in the world.

But for some, the International Court of Justice (ICJ) Consultant On the legal obligations of the state in the face of climate change, it can appear as a water gathering moment for financial markets.

Günther Thallinger, Member of the Board of Directors AllianzOne of the largest insurance companies in the world said that the observers close to the ICJ rule on July 23 described it as perhaps the most important climate development since 2015 Paris Agreement.

At that time, the permit was distinguished by the first opinion of the International Court of Justice on climate change I put This climate work is not optional.

The court said in a unanimous decision that governments and countries have a legal commitment to protecting the environment from greenhouse gas emissions, and to protect the current and future generations from the climate crisis and international cooperation.

It is worth noting that the International Court of Justice has also found that the production of fossil fuels, including licensing and benefits, “may constitute an international illegal work attributed to this situation.”

It is expected that the ruling, who was a daughter of the ideas of young law students in the states of the low Pacific Island and supported by the Vanooo government, will have long -term legal and political consequences.

Personally speaking, Thuntanger said that although the opinion of the International Court of Justice depends on the law and current agreements, the ruling can have meaningful repercussions on a wide range of assets – whether it is concerned with climate change or not.

“If one is taking an investor what the International Court of Justice has just said, then these assets must be re -evaluated. Every wise investor must do so now,” said Evanger to CNBC via video call.

“Even if they do not like the discussion about climate change, even if they say they are completely distorting the court of Justice, they must expect, in some countries, some governments, that some courts follow this opinion.”

“If they follow this opinion, it has the effects of asset evaluation, completely. So, this opinion is for investors, for participants in the capital market, really means something.”

This is because licensing and permits for the mining sector, for example, may be governmental benefits for fossil fuel in danger after the court’s opinion. Burning fossil fuels such as coal, oil and gas is Driver From the climate crisis.

“If the decline is illegal, one must expect the subsidies to be stopped in one way or another at a certain time,” said Ebeanger.

“Now, some commercial operations live on these benefits or at least benefit to a certain degree of these benefits. As is always the case for the investor, you usually simply look at the cash flow, and if the cash flow part is missing or suddenly becomes much smaller, this means another evaluation,” he added.

The United States and China, the world’s largest carbon motives in the world, provided a mixed response to the International Court of Justice.

“As is always the case, President Trump and the entire administration are committed to setting America’s priorities and giving priority to the interests of ordinary Americans,” said White House spokeswoman Taylor Rogers. Reuters mentioned.

Meanwhile, a Chinese Foreign Ministry spokesman said that the ruling is “positive importance” to enhance international climate cooperation and sought to reaffirm the status of the Asian country as a developing country.

The Trump administration also recently signed the American President Law A single beautiful invoice workThe package is Favorable For mining, oil and gas companies.

“All of this sends mixed signals that will lead to the responses of the market between the two largest economies in the world and (the rest of the world), slowing the global organizational rapprochement and eventually limits the effect (short -term) on markets and investor behavior.”

ABP spokesman, one of the largest pension funds in Europe, welcomed what they described as the “spirit” of the court’s opinion, but he said they did not expect any short -term repercussions for financial markets.

“ICJ’s consulting opinion sends a sign that climate inaction may be a violation of international law. However, given its non -binding normal normal, we do not expect immediate changes in national policies or financial markets,” ABC spokesman told CNBC via e -mail.

The Dutch pension fund, which is not investing in fossil fuels and says it is actively supporting climate solutions, is that Europe, for example, has already has a lot of applicable climate legislation.