“Five ways to align debt with climate and development goals”: Katie Gallogly-Swan, Rebecca Ray and B. Alexander Simmons from the Boston University Global Development Policy Center published an Op-Ed on the web presence of the “World Economic Forum” quoting the DRGR project.
On the occasion of the G7 meeting, which will also address climate protection as part of the talks on the economic recovery after the COVID pandemic, the authors focus on the necessary financial requierements to achieve urgent climate and development goals. They outline five ways how investing in nature could help to solve the international debt crisis.
The text acknowledges that “significant relief for all countries facing debt distress” is the basis for all further steps:
“Debt-for-climate swaps – currently gathering support in this vein – are a modern extension of traditional debt-for-nature swaps, where creditors and debtors negotiate to restructure or relieve existing debts to create more fiscal space for climate, environmental and development commitments. Innovative approaches, such as the Debt Relief for a Green and Inclusive Recovery proposal, could help indebted countries strengthen climate change mitigation and adaptation efforts in conjunction with debt relief”, it argues.
Read about all additional steps here.