Researchers find climate change imperils countries’ ability to repay pandemic debts

This lack of disclosure could lead to a severe debt crisis. The gaps we found suggest that governments do not understand the economic impacts of climate risks or are unwilling to report them. The COVID, climate, and credit crises compound in ways that could create a financial catastrophe during the peak of the climate crisis. Countries should transparently disclose climate risks, use the COVID-19 recovery to build climate resilience, and support the most vulnerable borrower countries. ‘Countries may struggle to pay back their rapidly rising debt because of the impact of climate risks on their economy.