Finance
Climate Change Raising Sovereign Credit Risk in Most Countries
- Moody’s sees climate-related events weighing on fiscal revenue
- Three-quarters of countries could see credit profiles reduced
People wade through flooded roads in southern Thailand, Jan. 2021.
Photographer: madaree Tohala/AFP/Getty Images
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Climate change is on course to lift borrowing costs across large swathes of the globe as rising sea levels, superstorms and droughts erode the economic stability of nations, according to Moody’s Investors Service.
The credit agency’s warning is the latest in a series of reports from financial institutions trying to grapple with the impact of global warming. Blackrock Inc., the world’s largest money manager, said Wednesday it wants more disclosure on how its investments are mitigating against climate risk. The European Central Bank and U.S. Treasury have both called on nations to step up efforts to cut greenhouse gas emissions.