Carbon tax spike could spur global recession – S&P

Higher carbon prices would trigger widespread industry defaults, says agency research unit

Imposing carbon taxes could spark sufficient key sector downgrades to trigger a global recession, says new research from an S&P research unit.

While taxing carbon prices is an almost inevitable response to the threat of climate change, introducing major taxes on carbon dioxide and other greenhouse gas emissions will be a hard blow to credit quality, says the research. Utilities and materials will be hardest hit by a wave of credit downgrades and defaults that could trigger a widespread credit