Biodiversity loss will decrease the future creditworthiness of nations (opens in new tab)  🦁Wildlife  Content type: Academic  4 articles covering this post

Biodiversity loss and deforestation are increasingly recognized as systemic economic risks. Yet, their implications for financial markets remain poorly understood. Here we study how biodiversity and ecosystem service loss affect financial risk for the world’s largest asset class, sovereign debt. Environmental degradation undermines the natural foundations of economic activity, reducing productive capacity and the ability of governments to service debt. Currently, sovereign credit ratings igno...