Climate change threatens European countries with soaring debt and credit risks.
Climate change poses risks to the financial stability of countries in Europe. These risks can affect credit ratings and debt costs. By combining different models, researchers found that climate change could harm a high-debt country's economy as early as 2030. To address this, they suggest using specific scenarios to analyze the impact of climate change on public finances. This approach can help policymakers understand the risks and make informed decisions to ensure fiscal stability.