How Climate Change Will Destroy Your Country’s Credit Rating

It is a bitter irony that rising seas, severe drought and violent storms associated with climate change will slam the world’s poorest nations that consume the least energy per capita. Changing weather patterns will also hit national credit ratings, raising borrowing costs for investment in infrastructure like dams or post-disaster rebuilding, notes a report from Standard & Poor’s. “S&P has yet to change any country’s credit rating based on its vulnerability to climate change, noting that the complexity of the phenomenon makes it difficult to assess the specific impact on any one nation,” reports Todd Woody for the Atlantic. “Yet clearly the rating agency is thinking about it.” Woody’s article includes maps and graphs that show the stark inequality in impacts from climate change. The report also lists factors for vulnerability to climate change including what percentage of the population lives in coastal areas, agriculture as a percentage of GDP, and ability to adapt. S&P suggests that climate change will become increasingly visible, dangerous and felt by all. – YaleGlobal

How Climate Change Will Destroy Your Country's Credit Rating

S&P assesses vulnerability to climate change and mulls credit downgrades for poor regions, with big coastal populations and reliance on agriculture imports
Todd Woody
Tuesday, May 27, 2014
Todd Woody is an environmental and technology journalist based in California. He has written for The New York Times and Quartz, and was previously an editor and writer at FortuneForbes and Business 2.0.
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