Climate crisis upside? Banks say air-conditioning firms will thrive

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 institutions.

- Oliver Milman

Recent reports by Morgan Stanley, JPMorgan Chase and the Institute of International Finance all make clear the sector considers that the Paris agreement limiting global temperatures is in effect dead and investors should plan accordingly.

"We now expect a 3C world," states last month's analysis by Morgan Stanley. This level of global heating above preindustrial times is well beyond the 2C limit agreed to a decade ago by nearly 200 nations.

The bank's investor research forecasts that a hotter world will provide a windfall for companies that provide air conditioning. It found that the global market could grow by 41% to be worth $331bn by the end of the decade. The analysis outlines dozens of air-conditioning firms globally that are likely to profit.