If trillions of dollars in climate finance go to emerging markets, the flows could amount to 5-10% of these economies’ GDP – similar to the financing surges that preceded the 1997 Asian financial crisis and the 2013 “taper tantrum.” Unregulated private capital flows of this magnitude will lead to overheating, volatility, imprudent lending, and overvalued exchange rates. Eventually, when the mania is seen for what it is, costly consequences will follow: capital flows will reverse, and both output and the financial sector will collapse. We have seen this movie before in country after country, and we know how it ends: badly. Turkey is only the latest example of financial globalisation gone wrong, as Harvard’s Dani Rodrik and I have argued. Long periods of private financial inflows indulge rather than discipline unsustainable macroeconomic policies, until the inflows suddenly become outflows, as they invariably do.