This webinar will discuss four types of risk assets if global warming is to stay at 2°C. First, a substantial part of fossil fuel reserves will be stranded at the end of the fossil era. Second, this will be true for capital of firms invested in fossil industries as well. Third, unanticipated changes in present or expected future climate policy cause instantaneous discrete jumps in today’s valuation of physical and natural capital. Fourth, if timing and intensity of climate policy are uncertain, revaluation of assets occurs as uncertainty is resolved either when announced climate policy is implemented or when it is botched at some future date.