Moody’s: Unaddressed climate change will hurt Florida bond ratings
Waiting to address climate change could cost taxpayers in coastal cities — particularly in highly vulnerable Florida — in a way that not even the most progressive resiliency planners have considered.
Leaving the growing risk of rising seas unaddressed is going to hurt municipal and government credit scores, says the bond rating agency Moody’s in a new report. That means that cities or states now ignoring the issue could face higher interest rates when they borrow money down the road. And, according to long-term climate projections, they will need to borrow a lot of it — hundreds of millions, maybe billions — for civil works projects that will be needed to keep sea level rise from inundating streets, homes and businesses in Florida in coming decades.
Guess who is going to pick up that extra cost of those bonds? Taxpayers.
So far, some South Florida counties and cities, which have already invested in or are planning projects to adapt to the threat of rising seas, are making moves to offset what amounts to a hidden cost of climate change. Miami Beach has famously invested nearly half a billion dollars in pumps and road raising, and Miami voters just approved the $400 million Miami Forever bond to address issues like sea level rise.