Major global biodiversity loss could cause enough economic damage by the end of the decade to severely cut more than half of the world’s sovereign credit ratings — including China’s, the first major study on the issue has warned.
WIKIMEDIA COMMONS
As ratings affect how much governments have to pay to borrow on the global capital markets, the downgrades would result in between $28 to $53 billion of additional interest costs annually. India, Bangladesh, Indonesia, and Ethiopia would face downgrades of approximately four notches, while almost a third of the countries analyzed would see more than three.
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