EU shown to ‘massively’ underestimate climate impact on debt-to-GDP ratios
"We can leave the economic consequences of climate change out of our models, but not out of our future."
Debt-to-GDP ratios across the EU could be as much as 58% higher than official projections by 2050 if member states don’t invest more in tackling the climate crisis, according to new analysis.
Aiming to assess the true cost of climate change to European economies, think tank the New Economics Foundation found that the EU’s Debt Sustainability Analysis ignored the impact of the climate crisis, resulting in largely underestimated debt projections.
