Financial shocks stemming from rising sea ranges pose a long-term threat to the sovereign credit score scores of dozens of nations which have giant areas prone to submersion, together with Vietnam, Egypt, Suriname and the Bahamas, Moody’s stated on Thursday.
Local weather science means that sea ranges will proceed to rise for many years, contributing to more and more frequent pure disasters corresponding to storm surges, floods and cyclones, the credit standing company stated in a report.
“The financial and social repercussions of misplaced revenue, injury to belongings, a lack of life, well being points and compelled migration from the sudden occasions associated to sea degree rise are instant,” Moody’s stated.
“Vulnerability to excessive occasions associated to sea degree rise may also undermine funding.”
Farming, tourism and commerce are all threatened by rising sea ranges, particularly in international locations with a big proportion of land and other people prone to submersion, together with island states just like the Philippines, Fiji and the Maldives.
Whereas high-income economies, corresponding to Japan and the Netherlands, are additionally uncovered, they’ve countermeasures in place that imply their credit score scores are unlikely to be materially impacted, Moody’s stated.