Wall Street Report: Global Climate Agreement Is Dead, But It's A Great Time To Invest In AC Companies
The world is on track for disastrous global heating – but this will create profits for some air conditioning companies, according to forecasts by leading Wall Street financial institutions.
Recent reports by Morgan Stanley, JPMorgan Chase and the Institute of International Finance all make clear the finance sector considers the Paris climate agreement limiting global temperatures, signed a decade ago by nearly 200 nations, is effectively dead and investors should plan accordingly. “We now expect a 3C world,” states a March analysis by Morgan Stanley. This level of global heating above preindustrial times is well beyond the 2C limit agreed to by governments and would lead to catastrophic heatwaves, floods, economic strife and other upheavals.
The Morgan Stanley investor research forecasts, though, that multiplying heatwaves will provide a windfall for companies that provide air conditioning, and that the global market could grow by 41% to be worth $331bn by the end of this decade. The analysis outlines several dozen air conditioning businesses around the world that are likely to profit from a hotter world. “Progress on climate change is likely to fall short of net-zero targets,” the report states. “We expect cooling – critical to human health and productivity in many climates – to be a potent long-term growth theme.” The skepticism of top Wall Street firms over climate targets is shared by many other analysts, including at the United Nations, who have predicted that the Paris goals are wildly off-track due to persistently high greenhouse gas emissions.
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“We are clearly seeing a broad retreat on climate from the finance sector,” said Paddy McCully, senior analyst at Reclaim Finance, a group that pushes financial firms to act on the climate crisis. “It is to a very large extent being influenced by Trump and his agenda of accelerating climate change, although also due to banks using Trumpism as an excuse to roll back commitments that they had never actually intended to keep.” Morgan Stanley’s investor research on air conditioning is “mind numbingly cynical”, McCully said. “Especially as it comes just months after they first weakened their decarbonization targets and then quit the Net Zero Banking Alliance.”
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https://www.theguardian.com/environment/2025/apr/02/us-banks-climate-goals-fail-air-conditioning