This study can help you to better understand the risks of biodiversity loss for nations and their financial health and resilience. It warns that financial markets are underestimating the economic risks of biodiversity loss, and that nature decline could trigger a wave of debt crises, with severe effects on the creditworthiness of vulnerable nations. It explains that existing ratings frameworks fail to incorporate environmental degradation, leaving some $83 trillion of global assets vulnerable to mispricing. The researchers estimate that even a partial collapse of key ecosystems – such as that of wild pollinators, marine fisheries, or tropical forests – could increase annual global sovereign debt interest payments in excess of $160 billion.
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