According to a new report by the United Nations, the COVID-19 pandemic is threatening the fight against poverty and increasing global inequality. In its chapter on debt relief, the text refers to our proposal.
After five years, the cumulative increase in real GDP associated with investments in green energy infrastructure is nearly twice as high as that on spending on non-ecofriendly energy. Findings like these highlight the importance of a post-COVID-19 sustainable recovery not only from an environmental but also an economic perspective.
As the International Monetary Fund plans to inject $650 billion into the global economy, Climate Home News recaps the recent developments in the plea for financial support for vulnerable nations, referring to the DRGR proposal.
The Centre for the Studies of the Economies of Africa (CSEA) together with the Heinrich Böll Foundation are hosting an online event on ‘Debt Relief for a Green and Inclusive Recovery in Nigeria?’ on Thursday, 8 April at 2 PM (WAT).
According to the briefing “A debt pandemic: Dynamics and implications of the debt crisis of 2020”, public debt of developing countries has increased from an average of 40 to over 60 percent of GDP within the last ten years. More than one-third of the increase took place in 2020 alone.
According to a report launched by the Global Recovery Observatory only 18.0% of announced recovery spending can be considered “green” while just 2.5 % of total COVID-induced expenses to date had “positive green characteristics”. These findings once more stress the importance of the DRGR idea.
The “Nature and Climate Sovereign Bond Facility” proposed in a report by Finance for Biodiversity aims to build on investor interest in green debt and create nature-performance bonds and other instruments that align payments with environmental outcomes.
Kevin Gallagher is professor and director of the Global Development Policy Center at Boston University’s Pardee School of Global Studies and one of the co-chairs of the DRGR project. In the Financial Times he takes issue with the surcharges that the IMF adds to the interest and fees on its loans.
Both in the EU and the USA the general idea of aligning debt relief with climate action is getting high level support.