I. INTRODUCTION
The convergence of climate risks and high debt burdens in low and middle-income economies (LMIEs) has created a dual crisis that demands innovative solutions. Increasingly, Global South nations struggle with high debt and vulnerability to climate change impacts. In fact, nearly 60 percent of low and middle-income countries facing significant climate risks are also at high risk of financial crises. These countries are caught in a vicious cycle, spending an average of five times more on repaying their debts than addressing climate change or investing in mitigation efforts in 2021, a ratio projected to increase to seven times by 2025. As extreme climate events intensify, the financial strain on these…
