India Faces Significant Economic Risks from Climate Change by 2050
• A report by Ortec Finance highlights the potential economic risks posed by climate change, particularly under scenarios of global warming reaching 2.8°C or 3.8°C by
• The analysis, which examined 180 pension fund portfolios across six major pension systems globally, predicts a 10-30% drop in pension savings returns by 2050 under the 2.8°C warming scenario. Sovereign credit risks are expected to rise, with high debt levels leaving countries like India more vulnerable to financial impacts. Under a high warming scenario of 3.8°C, sovereign bond values in India could drop by 53%, while a 2.8°C scenario could see a 23% decline. The report underscores the need for climate-resilient financial strategies to mitigate these risks.
Impact & Risks
India is particularly vulnerable to the financial impacts of climate change, with sovereign bond values projected to decline significantly under warming scenarios. A 53% drop in bond values under a 3.8°C scenario could severely impact the country's economic stability and investor confidence. Pension funds and sovereign debt markets are at heightened risk, potentially affecting millions of Indian citizens reliant on these financial systems. The broader global economy could also shrink by $58 trillion by 2065 under high warming conditions, further exacerbating economic challenges.
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