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“NewClimate Institute” Paper Examines Climate-for-Debt Swaps, Referring to DRGR

In the paper “Climate, COVID-19, and the Developing Country Debt Crisis” the research institute for climate policy examines the potential of climate-for-debt swaps and ways to define possible candidates.

In the paper “Climate, COVID-19, and the Developing Country Debt Crisis” the research institute for climate policy examines the potential of climate-for-debt swaps and ways to define possible candidates.

In order to have a significant financial and climate impact, debt-for-climate swaps need to help increase fiscal flexibility beyond generic macroeconomic stabilization, the working paper argues, referring to the DRGR proposal.

In its further course, it articulates four central criteria and proxy indicators for potential priority countries: “Economic indicators that reflect the need for debt relief; Emissions and fossil fuel indicators reflect potential for emissions reductions; Climate action indicators that are likely to indicate interest, willingness, and potential country ownership; and Governance indicators that indicate capacity to use the gained fiscal flexibility effectively.”

Read the whole report for detailed information.

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