- To build back better, we must make sure economic recovery plans also foster resilience to climate change.
- Debt-for-climate swaps could offer countries debt relief in exchange for a specific commitment to environmental goals.
- Debt swaps need to free up resources, so payments to climate objectives should be lower than original debt service payments.
Due to COVID-19, we are facing a huge increase in sovereign debt that is putting pressure on our economies by increasing demands on national health spending and causing sharp downturns in economic activity. The IMF has recently issued a warning, as debt ratios are accumulating over levels that are already historically high. And while this is by no means an issue confined to low-income cou…
Read the full article at: https://www.weforum.org/agenda/2020/10/debt-climate-swaps-spur-green-recovery/