Credit rating agencies are miscalculating risks of climate change

A new report argues that credit agencies' failure to properly account for climate risks could lead to the next global financial crisis

Credit rating agencies such as Moody's Investors Service and Standard & Poor's are miscalculating the risks of climate change, which could lead to the next big financial crisis, a new report claims.

The paper, released on Wednesday by the Center for International Environmental Law (Ciel), an advocacy group in Washington DC, claims that much like the 2008 housing crisis, when banks overvalued so-called "subprime mortgages", credit rating agencies are doing the same thing with fossil fuels like coal and oil.

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