Behind the credit risks of climate change

A coal-burning power plant steams behind wind generators inGermany during the UN climate talks in Bonn, Germany. Photo: Martin Meissner / AP

A report by Moody's Investors Service, out today, looks in-depth at how the ratings agency assesses climate change risks — such as extreme heat, rising sea levels, extreme weather events, "nuisance" flooding and more — for state and municipal governments that are becoming more severe over time.

Why it matters: The report — which explores both underlying trends and climate "shocks" from extreme events — offers a window into how specialists view the long-term fiscal risks from climate change.