Climate Risk Could Hit Already Vulnerable Nations With a Double Whammy
If investors start backing away from their sovereign debt, it could become harder for countries to finance necessary adaptation measures.
A firefighter carries a hose as buildings burn in the Skyhawk Park neighborhood of East Santa Rosa during the Shady Fire in Sonoma County, California, U.S., on Sept. 27.
Photographer: Philip Pacheco/BloombergSign up to receive the Green Daily newsletter in your inbox every weekday.
When investors thought about how climate change might affect their portfolios a decade ago, their attention was usually focused on the companies they were investing in. How big was a firm’s carbon footprint, for example, compared to its industry peers? These days, people looking at climate risk are increasingly focused on a new problem: the assets issued by governments.