Climate-change linked downgrades could cost countries $270 billion-a-year

The estimates comes amid warnings by policy makers from around the world that financial markets are underpricing the risk of climate change on asset prices, with potentially costly future corrections

Climate change could lift interest payments on sovereign and corporate debt by nearly $270 billion a year by the end of the century, according to Cambridge University and the University of East Anglia.

The authors of the study used artificial intelligence to simulate the impact of global warming on Standard & Poor’s credit ratings for 108 countries.

They found that -- in the absence of stringent climate policies -- downgrades could be widespread across major economies including the U.S., U.K., China, India, Australia and the European Union. More than 60 nations could already see lower ratings by 2030.

As a