AIIB warns climate inaction could downgrade a third of sovereign borrowers by 2050

The Asian Infrastructure Investment Bank (AIIB) has warned that a significant portion of its sovereign borrowers could face credit rating downgrades by 2050 due to climate inaction. This is based on a report that suggests nearly 34 percent of the bank's portfolio would be affected if global climate policies remain unchanged and the planet continues to warm by around 2.9 degrees Celsius above pre-industrial levels. The downgrades could have serious implications for the economy, as they would make it more expensive for these countries to borrow money and invest in…

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Climate change could lead to economic instability and lower credit ratings for many countries. This could increase borrowing costs and reduce investor confidence in these countries.

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