New CWR report! Sovereigns at Risk – APAC Capital Threats

by China Water Risk 22 November, 2020

23rd November, 2020 – CWR releases new report,Sovereigns at Risk: APAC Capital Threats – Re-ratings warranted as city capitals & GDP are materially exposed to coastal threats.

Acute & chronic risks from coastal threats create a sizeable permanent overhang that warrants a recalibration of risks across finance. APAC governments that are not protecting their cities and revenues only compound the physical threats ahead.

In this report, we analyse clustered risks from GDP to trade and markets plus run through the implications for sovereign credit ratings of the 14 APAC countries/territories.

As Dharisha Mirando, lead author of the series warns “The high concentration of financial risks is concerning. In APAC, people, assets and GDP are clustered in coastal capitals and key cities – the 20 APAC cities in our index generate US$5.7trn of GDP per annum, this is greater than the combined GDP of Germany and Canada.” 


Our analysis highlighted unexpected behaviour – governments that should do more to protect their cities are not. Our analysis have lead us to put Japan, Hong Kong, Macao and Taiwan on our watchlist – find out why in the report.

This report includes:

  • GDP exposure of 20 key cities to coastal threats assessed for 14 sovereigns/ territories in APAC;
  • Find out:
    • Why Japan, Taiwan, Hong Kong & Macao are on our watchlist;
    • Capital threats beyond the 20 cities in our index; and
    • Why we left out Malaysia; but it is still exposed.
  • CWR APACCT 20 Index implications for sovereigns:
    • GDP, logistics infrastructure, market & banks analysis;
    • Relative government adaptation action/inaction for 2 temperature scenarios; and
    • Sensibility analysis of government adaptation action/inaction for 20 cities vis-à-vis various GDP metrics.
  • Government case studies for:
    • Cities adapting to coastal threats – Singapore, Jakrta, Tokyo, Shanghai, Guangzhou, Shenzhen;
    • No sense climate strategies for governments – Singapore, Hong Kong & Macao; and
    • No sense climate strategies for sectors – finance & real estate.

For more on sovereigns at risk – access the full report.

The report is part of the newly released CWR Coastal Capital Threat Series and should be read alongside the other four reports in the series. To see the other reports in the series please click here.

To access Media Pack – please click here.