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Worldwide, the number of weather extremes is rising. Natural disasters in developing countries and even the floods in Europe are just examples for this fact. People living in vulnerable areas of developing countries are the most affected by the effects of climate change. To reduce emissions of greenhouse gases (GHG), which are the main causes for climate change, national and international regulation is emerging. Climate change does not only affect communities and societies but also companies and the financial sector. Extreme weather events can ruin companies and destroy economical values. The insurance industry and other institutional investors have begun to take climate and CO2 risks into consideration. This paper presents an overview of the climate change risks and financial sector.