This article discusses how poor nations are footing a huge bill because of climate change. For every $10 climate-vulnerable countries paid in interest over the past decade, $1 was attributable to climate risks, study says.
Poor countries could have to pay up to $168 billion more in interest over the next decade as extreme weather events brought on by climate change affect their credit ratings, a study said on Monday.
Nations that rely heavily on agriculture are likely to suffer as global temperatures rise, bringing more storms, floods and droughts that can destroy crops and curb production, according to research commissioned by the United Nations.
Rice plantations in Vietnam are vulnerable to rising sea levels, while Guatemala’s maize output could be hit by drought and tropical storms are a threat to the Barbados tourism industry, the paper said.
Such risks push borrowing costs up as lenders charge more, one of the study’s authors Charles Donovan told the Thomson Reuters Foundation.