Rising seas and sinking cities

  • Business
  • Saturday, 25 Jan 2020

The threat from rising seas is not only limited to Venice. Parts of asia that are located along coastlines will also be affected. this includes many capital cities in asia.

Even if something is done now to stabilise greenhouse gas emissions, reports say that sea levels will continue to rise beyond 2100 with ice-cliff instability on the antarctic.

deloitte points out in a report that asia accounts for over 50% of the world’s greenhouse gas emissions and large populations in asian cities are prone to the influence of rising sea levels, as most major cities are located along the coastlines. a rise in abnormal weather events expands the impact of a changing climate towards inland cities.

Moody’s Investors Service in a report says rising sea levels also pose a long-term credit threat.

It says several countries in asia, the Middle East, north africa and small islands are most exposed to rising sea levels. Coastal areas with lower elevations are at greater risk, with Vietnam, Suriname and Egypt among the most exposed countries by economic output.

The rating agency says the credit implications are wide-ranging, with the Teconomic and social repercussions of lost income, damaged assets, loss of lives, health issues and forced migration as sea levels rise. the main credit channels for sovereigns are economic and fiscal strength, and rising sea levels can also undermine investment and heighten susceptibility to event risk.

This will hinder the ability of governments to borrow to rebuild, increasing losses for banks, raising external ressures, and/or amplifying political risk as populations come under stress. a one-metre rise in sea levels will ffect 1.3% of the population of these countries or 56 million people, based on the population size in 2000 – most likely significantly more based on today's population and population density – and 0.3% of their land area, Moody's report says.

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