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Article
Climate Disasters Could Rewrite the Rules of Sovereign Credit Risk
Dr. Arthur Krebbers, Managing Director, Sustainable Finance Advisory at NatWest Commercial & Institutional, explains why physical climate risk is becoming increasingly important to sovereign creditworthiness. He examines the challenges of measuring adaptation, mobilizing private investment and incorporating climate resilience into bond pricing, arguing that preparedness could become a decisive factor in financial risk assessments.
Nov 12, 2026

Arthur Krebbers, Managing Director, Sustainable Finance Advisory, NatWest Markets N.V
Tags:
ESG and Climate Risk
The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization
- Physical climate risk is becoming increasingly important in sovereign and corporate credit assessments
- Climate preparedness and
institutional resilience can influence debt-servicing capacity
- Data gaps and immature
adaptation benchmarks complicate financial risk measurement
- Public-private financing
structures can help mobilize adaptation investment
- Sovereign bond markets may
increasingly differentiate countries by climate resilience
- Better disclosures, geospatial
analytics and financial innovation are essential
- Adaptation could become a major
source of financial stability and investment opportunity
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