Development Group Urges Shared Solutions for Debt and Climate Crises
Washington DC – As countries address their debt crises, policy responses can reduce climate change, asserts a new study. “Linking Debt Relief and Sustainable Development: Lessons from Experience,” examines previous debt relief processes to learn how debt and climate responses can work in tandem.
“The coronavirus crisis reduced spending on climate issues in poor countries,” stated report author Aldo Caliari, the Senior Director of Policy and Campaigns for Jubilee USA Network. “The good news is that global policies can be designed to provide debt relief and nurture a green recovery at the same time.”
In November, Zambia defaulted on its debt and several more countries face defaults due to the coronavirus-spurred economic crises. The G20 announced a new debt relief process for 73 of the world's poorest countries.
The Heinrich Böll Foundation, the Center for Sustainable Finance (SOAS, University of London), and the Global Development Policy Center (Boston University) commissioned the paper as a contribution to their Debt Relief for a Green and Inclusive Recovery Project.
Read Aldo Caliari's Linking Debt Relief and Sustainable Development: Lessons from Experience
Read more on Debt Relief for a Green and Inclusive Recovery Project.