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  "documentTitle": "Sustainability Risk Under Solvency II",
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  "notes": "Includes a 2x2 matrix mapping transition risks vs physical risks.",
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      "text": "For further analysis, we focus on the relatively weak RefPol-500 and the substantially stronger StrPol-450 scenario. The transition risk associated with the other two scenarios lies in between.",
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      "text": "Under full cooperation, the GCAM (inflation-adjusted) CO2-prices converge under the same policy target. RefPol-Scenarios start out at lower prices and are hence less disorderly compared to the StrPol-Scenarios.",
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      "text": "For further analysis, we focus on the relatively weak RefPol-500 and the substantially stronger StrPol-450 scenario. The transition risk associated with the other two scenarios lies in between.",
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      "text": "In Europe, effective CO2-prices are already on a moderate level (ca. 10 USD/t CO2e). For other regions, the available data shows no notable level of effective emission prices.",
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      "text": "Developed countries are generally subject to higher CO2-price shocks under the policy scenarios than emerging markets. The relative CO2-prices across different regions may vary across different IAMs.",
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      "text": "1: Recent effective CO2-prices were derived from UNFCCC (June 2019) and CDIAC: National Carbon Emissions and the World Banks Carbon Pricing Dashboard",
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      "text": "The WP1-scenarios exhibit different levels of transition risk, depending on the socio-political assumptions and long-term targets",
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