As reported by Reuters, IMF Managing Director Kristalina Georgieva said “green debt swaps have the potential to spur accelerated action on climate change in developing countries”, announcing appropriate instruments by November.
“We are going to work with the World Bank and by (United Nations Climate Change Conference 26) COP26, we will advance that option,” Georgieva said.
“When we are faced with this dual crisis – the debt pressures on countries and the climate crisis, to which many low-income countries are highly, highly vulnerable – it makes sense to seek this unity of purpose,” she elaborated on Thursday, taking up one of the core ideas of the project “Debt Relief for a Green and Inclusive Recovery”.
One day before, Reuters already referred to a draft document on a planned platform by the World Bank and the IMF “to advise poor countries on funding climate and conservation activities, amid a broader push that could link such spending to debt relief.”
Published at the outset of their annual spring meetings, a joint paper mentioned the development of an “organizing framework” to connect debt relief with investments in “green, resilient and inclusive development.”
We are looking forward to contribute to the discussions of IMF and World Bank with ideas developed in the DRGR-project.