Tag Archives | climate risk
Climate change, Economics, Environment, Finance sector development
Exploring the link between climate change and sovereign risk
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Climate change can have a material impact on sovereign risk through direct and indirect effects on public finances. In addition, climate change raises the cost of capital in climate vulnerable countries and threatens debt sustainability. Governments must climate-proof their economies and public finances or potentially face an ever-worsening spiral of climate vulnerability and unsustainable debt burdens.
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