Research Links Biodiversity Loss to Increased Sovereign Debt Costs

New research suggests that ongoing biodiversity loss could significantly increase annual sovereign debt-servicing costs for 23 countries by US$162 billion. China and India are projected to face the largest additional payments, potentially $70 billion and $49 billion respectively. This analysis highlights how natural capital degradation impacts economies and financial markets, indicating that up to $83 trillion in financial assets may be mispriced due to overlooked nature-related financial risks.