LONDON, June 5 (Reuters) – Financial markets are underestimating the ⁠economic ⁠risks of biodiversity loss, potentially exposing ⁠countries to sovereign debt crises and sharply higher borrowing costs, according to research published ​on Friday. The study, led by economists from the Universities of Sussex, Sheffield and Heriot-Watt, presented what they described as the world’s ‌first biodiversity-adjusted sovereign credit ratings model. It ‌said existing ratings frameworks fail to incorporate environmental degradation, leaving some $83 trillion of global assets vulnerable to mispricing. Using an ⁠adjusted version of ⁠S&P Global’s ratings methodology, the researchers estimated that even a partial collapse of ​key ecosystems – including wild pollinators, marine fisheries and tropical forests – could increase annual global sovereign debt interest payments by $162 billion. “Financial markets are effectively blind to nature-related risks,” said the University of Sussex’s Matthew Agarwala. “As biodiversity loss undermines economic performance, it becomes harder for ​countries to service their debt, raising borrowing costs and fiscal strain.” Ecosystems underpin the global economy through “ecosystem services” like ⁠crop ⁠pollination and seafood production. Partial disruption ⁠to these could …