Investing for the Future: How Debt Relief Can Help Make Space for Climate and Development Goals

On Tuesday, May 14 from 9:00-10:15 AM EDT | 14:00-15:15 BST, join us for a webinar discussion featuring global experts in international development, debt and climate on the latest DRGR Project report and how to sustainably advance development and climate investments.

With only six years left to achieve the United Nations 2030 Agenda for Sustainable Development and Paris Agreement targets, bold and swift policymaking is necessary to stave off severe impacts for both present and future generations.

Yet, emerging market and developing economies (EMDEs) are facing historic levels of external debt, higher interest rates and low growth prospects that are inhibiting their ability to invest in climate and development goals without sacrificing debt sustainability.

A new report from the Debt Relief for a Green and Inclusive Recovery (DRGR) Project finds that of 66 eco­nomically vulnerable EMDEs, 47 EMDEs with a total population of over 1.11 billion people will face insolvency problems in the next five years if they seek to ramp up investment to meet climate and development goals. The authors argue that debt relief, in a package with new liquidity and affordable development finance, is urgently needed to allow these 47 economically vulnerable EMDEs to maintain debt sustainability while investing in climate and development.

The DRGR Project has developed a proposal that is in many ways a modern-day version of the Brady Plan and the Highly Indebted Poor Countries (HIPC) Initiative of the 1990s combined. 

The proposal is designed to address the immediate challenges fac­ing indebted EMDEs, while providing a step­ping stone towards establishing a new global debt architecture that is fair, transparent, efficient and cognizant of the needs of EMDEs.

Header image credit: Tom Winckels via Unsplash.