"Carbon bubbles stem from overvaluations of fossil fuel companies, high-carbon industries, and other unsustainable practices.
They’re overvalued because of the gap between the bright futures investors currently see for these industries and the reality that any real climate action will mean many fossil fuels will be unburnable and many of these practices will be made obsolete.
The result will be what analysts blandly term “rapid repricing,” but the rest of us would call a crash. But don’t take my word for it: https://twitter.com/AlexSteffen/status/1120207762779099136?s=20
Here it’s critical to remember that almost all financial decisions — investment, credit, insurance, subsidies — are bets about the future. While they may be bets about the future, they take place now. Foreseeable future losses become present trouble." (https://medium.com/@AlexSteffen/im-a-climate-futurist-here-s-what-s-next-4d7248c297ac)