S&P Issues ‘Warning’ on Mozambique, Citing ‘Climate Risk’

re posted from                      EXECUTIVE INTELLIGENCE REVIEW

S&P Issues ‘Warning’ on Mozambique, Citing ‘Climate Risk’

Securities rating agency S&P Global Ratings, formerly Standard & Poor’s, has issued a “warning” on the creditworthiness of Mozambique, citing the Global Climate Risk Index (GCRI), a rating of the creditworthiness of governments and nations based on so-called climate criteria. The GCRI has been issued for 15 years by the climate-change NGO, Germanwatch, but this is possibly the first time its ratings have been used as a credit rating instrument by a financial institution.

Mozambique is one of the nine poorest countries in Africa. Located on the Indian Ocean, it is prone to flooding and wind damage from cyclones that routinely devastate the region.

S&P’s application of the GCRI to Mozambique is consistent with the Green Reset, which prioritizes ESG ratings—environmental, social, governance—as a primary concern for corporate “health.” If extended to other countries, it will have devastating effects on the finances of already pandemic-stressed institutions.

Poor as it is, Mozambique has vast natural gas deposits, onshore and offshore, discovered in and since 2010, which when developed will put Mozambique among the world’s top ten sources.

Source: Executive Intelligence Review: Africa Brief

https://larouchepub.com/eiw/public/2021/eirv48n08-20210219/index.html

 

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