Poor credit ratings imperil climate action

Factory greenhouse gasBecause of their limited ability to access financial markets, developing countries are struggling to cut greenhouse gas emissions, says a ratings agency. Of the 170 countries that ratified the Paris Agreement, 60 have disclosed a financial plan to meet their responsibilities, according to research by S&P Global Ratings. Together, these 60 countries expect the cost to be $5.3 trillion. “One of the key challenges facing countries that are most exposed to the physical impacts of climate change – typically emerging and developing economies – is their limited access to financial markets, which is partly due to their lower creditworthiness,” said the agency. Many countries hope the private sector will meet the cost of adapting to a low-carbon economy. However, S&P Global Ratings says many areas have received too little private investment, such as energy efficiency or building resilience. “Recent extreme weather events have shown just how vulnerable these countries are, particularly if the frequency and intensity of these events increases through climate change, and the severity of the impact. For example, Hurricane Harvey is expected to cost the US around 1% of its GDP, whereas the damage caused by Hurricane Irma is likely to cost some Caribbean Islands more than their annual GDP, according to reports.” ©2017 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.