Get Rethink Afghanistan Updates
Join us on Facebook Follow us on Twitter Follow us on Twitter Get E-Mail Updates
You can help

Natural debt threatens the world economy, experts fear

Posted by The Agonist on November 21st, 2012

From our partners at The Agonist

Telegraph, By Geoffrey Lean

Will the next financial crisis be caused by environmental stress? It might seem, on the face of it, to be an unlikely prospect – but it proved a real enough risk to draw hundreds of experts from top financial institutions to a conference in the City of London this week. Hosted by Bloomberg – and sponsored by the French group Caisse de Dépôts, the German bank KfW Bankengruppe and the Swiss MAVA Foundation – it examined “to what extent natural resource risks can impact a country’s economy and, thus, its ability to pay its debts.”

Sovereign bonds used to be thought of as virtually risk-free before the financial crisis hit in 2008. They have looked less so since. But a report for this week’s conference argued that one major area of risk was still being neglected – the decline of the natural world as both population and levels of consumption increase.

“Natural resources – both renewable, biological resources such as food and fibre, and non-renewable resources such as fossil fuels, ore and minerals – are critical to each nation’s economy”, says the report, produced by the Global Footprint Network, a California-based think tank, and the United Nations Environment Programme (UNEP) Financial Initiative.

“Yet, to date, risks stemming from renewable resources, in particular, are not well considered in sovereign credit risk assessments. As resource constraint tighten globally, countries that depend, in net terms, on levels of renewable natural resources and services beyond what their own ecosystems can provide may experience profound economic impacts as resources become more unreliable or costly.”

More at the link

Share this:
Peacemakers take action to lead the charge to end the war. Join forces with the over 100,000 people who make a difference.


Subscribe via RSS
Become a Peacemaker

Bronze Telly Award
For general questions, email us here.
For technical issues regarding this site, contact us here.


For Press inquiries, please contact Kim at:

Director: Robert Greenwald - Executive Director: Jim Miller - Producer: Jason Zaro - Associate Producer: Dallas Dunn, Jonathan Kim, and Kim Huynh - Researcher: Greg Wishnev - Editor: Phillip Cruess - Political Director: Leighton Woodhouse - VP Marketing & Distribution: Laura Beatty - Production Assistant: Monique Hairston

Anyone is allowed to post content on this site, but Brave New Foundation 501(c)(3) is not responsible for that content. We will, however, remove anything unlawful, threatening, libelous, defamatory, obscene, racist, or that contains other material that would violate the law. By posting you agree to this.

Brave New Foundation | 10510 Culver Blvd., Culver City, CA 90232