The effects of Hurricane Maria in Dominica in 2017 caused millions of dollars worth of damage to the countrys economy.Credit: Alejandro Cegarra/Bloomberg via Getty
Most governments astronomical borrowing during the current pandemic pays scant attention to the effects that climate change could have on their ability to repay the debt. Here we present an analysis of countries sovereign debt issued in 2020, showing that the vast majority of nations did not disclose the ways in which global warming might alter their credit-worthiness.
This is concerning. Even the anticipation of a climate shock might cause a debt crisis. If financial markets misprice the current risk, an event in one country could awaken investors sensitivity, trigg…
Read the full article at: https://www.nature.com/articles/d41586-021-00871-w
