Most crucially, there would be no new debt for the debtor countries.
This is not just smart policy; it’s a lifeline for countries trapped between climate disaster and fiscal collapse.
These kinds of innovations buy time and space. They allow governments to redirect funds from debt service to public investment in people, infrastructure, and recovery. But innovations alone won’t solve the crisis.
Small island nations crucially need to create their own, home-grown solutions and use finance more effectively for development, based on quality data and statistics.
This is exactly what the Antigua and Barbuda Agenda for Small Island Developing States (ABAS), adopted in 2024, calls for: more finance, but also capacity support so they…
