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COVID debt is mounting in the countries that are most vulnerable to climate change.
That is leading to some of the world's top global development officials to quietly propose something quite radical: debt cancellation for climate action.
https://www.politico.eu/article/covid-coronavirus-debt-crisis-undermines-climate-change-finance/
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That is leading to some of the world's top global development officials to quietly propose something quite radical: debt cancellation for climate action.
https://www.politico.eu/article/covid-coronavirus-debt-crisis-undermines-climate-change-finance/
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The idea is to meet the twin crises of COVID economic breakdown and climate with one powerful elixir.
It hasn’t yet found support from donor countries. But backers include UN chief @antonioguterres and IMF chief @KGeorgieva, who called for "a new global compact," Monday.
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It hasn’t yet found support from donor countries. But backers include UN chief @antonioguterres and IMF chief @KGeorgieva, who called for "a new global compact," Monday.
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Georgieva and COP26 president @AlokSharma_RDG have met to talk through how it might work — per two people familiar with the talks.
Will the UK gvmt use the COP to try and renew the Bretton Woods system? “This is absolutely a history-making opportunity,” said @rkyte365.
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Will the UK gvmt use the COP to try and renew the Bretton Woods system? “This is absolutely a history-making opportunity,” said @rkyte365.
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Why it matters? Out of the 48 @TheCVF vulnerable countries, more than half are low-income nations the IMF rated at moderate to high risk of debt distress in December.
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Climate finance to the poorest countries still overwhelmingly comes in the form of loans, which adds to the debt burden.
Private capital runs away from the risk.
Borrowing costs increase. Projects stall.
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Private capital runs away from the risk.
Borrowing costs increase. Projects stall.
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The price of doing nothing? In Angola, the economy is spiraling. Climate projects are being cancelled. The government’s response? A proposed move to open up conservation areas to oil drilling.
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