Finance
Bond Investors Risk Climate-Change Hit to Economic Growth
- U.S. could lose 20% of its GDP per capita by 2050, study finds
- Markets adapting through record issuance of green bonds
Photographer: Jonathan Nackstrand/AFP/Getty Images
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Bond buyers need to start factoring global warming into investment decisions as countries with the highest risk to climate change could see more than a fifth of their economic output wiped out by 2050, according to an analysis by index provider FTSE Russell.
The U.S. is projected to lose 20% of its per-capita gross domestic product by 2050 in a worse-case scenario, with nations closer to the equator or with high-carbon economies even more vulnerable, according to the report published Wednesday. It forecast Malaysia would see the worst economic hit at 31%.