EMEA > Africa > Carbon risk, climate shocks pushing up sovereign borrowing costs, ECB finds

Carbon risk, climate shocks pushing up sovereign borrowing costs, ECB finds

Published 11:18 on February 20, 2026 / Last updated at 11:18 on February 20, 2026 / / Americas (LATAM & Caribbean, US & Canada), Asia Pacific (Asia, Pacific), EMEA (Africa, Europe, Middle East), Net Zero Transition (Investment, Reporting & Disclosure)

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Climate-related disasters and high carbon emissions are increasingly pushing up sovereign borrowing costs, with fiscally fragile and developing countries facing the steepest penalties on their debt, according to new research by the European Central Bank (ECB).
Climate-related disasters and high carbon emissions are increasingly pushing up sovereign borrowing costs, with fiscally fragile and developing countries facing the steepest penalties on their debt, according to new research by the European Central Bank (ECB).


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