Gunther Thallinger from Allianz Group warns that climate change poses a significant threat to capitalism, primarily due to excessive CO2 emissions leading to radical climate shifts.

He links rising CO2 emissions to global warming, highlighting that increased temperatures create physical risks for critical assets, including homes, infrastructure, and factories.

As temperatures rise, the insurance industry faces unprecedented challenges, with certain areas becoming uninsurable, which could trigger a potential credit crunch.

Thallinger emphasizes that the inability to insure properties undermines the financial sector's foundation, as uninsurable assets cannot secure mortgages or loans.

Extreme weather events are increasingly diminishing asset values, disrupting business operations, and contributing to systemic market devaluation.

With projections indicating a possible 3°C increase in global temperatures, Thallinger warns that traditional risk management strategies will collapse, leading to financial instability and potentially the end of viable capitalism.

He identifies climate-driven market failure as a direct consequence of capitalism's reliance on fossil fuels, cautioning against the false hope that adaptation alone can mitigate these effects.

To combat these challenges, Thallinger advocates for urgent action to reduce carbon emissions or capture them at the source, promoting scalable technologies such as solar, wind, and green hydrogen.

The article critiques the current political landscape in the U.S. for worsening climate issues by promoting fossil fuel exploitation, which contradicts the necessary actions to save capitalism from the impacts of climate change.