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63 nations to see ratings downgrades by 2030 for ignoring climate change

The US grade would drop by two notches, and as much as three levels for Germany, India and the Netherlands.

Photo: Bloomberg
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Photo: Bloomberg

Frances Schwartzkopff | Bloomberg
A failure to cut pollution will cost governments around the world billions, according to University of Cambridge economists who used artificial intelligence to forecast climate change’s effect on sovereign credit ratings.

If emissions continue at current levels, 63 countries will see ratings downgrades of more than one notch by 2030, acording to the group, which includes Moritz Kraemer, S&P Global Ratings’ former chief sovereign ratings officer. The U.S. grade would drop by two notches, and as much as three levels for Germany, India and the Netherlands. Even meeting Paris Agreement commitments will mean an average cut of 0.65.

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First Published: Mar 18 2021 | 7:46 AM IST

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