Anahí Wiedenbrüg’s Post

https://lnkd.in/dMA4E_hq Climate spending may make emerging nations with high debt insolvent A further 19 developing countries lack the liquidity to meet the spending targets without help, though they would not approach default thresholds debt. The report called for an overhaul of the global financial architecture, alongside debt forgiveness for the most at-risk countries and an increase in affordable finance and credit enhancements. Emerging countries will pay a record $400 billion to service external debt this year, and 47 of them cannot spend the money they need for climate adaptation and sustainable development without risking default in the next five years, according to a report released on the eve of IMF/World Bank spring meetings.

Emerging Market and Developing Economies (EMDEs) are facing a dire financial predicament that could jeopardize the global pursuit of the United Nations 2030 Agenda for Sustainable Development and the @Paris Agreement. A new report by the Debt Relief for a Green and Inclusive Recovery (DRGR) Project reveals that a significant number of these economies might become insolvent within the next five years due to their efforts to ramp up investments to meet climate and developmental goals. Read Dr. Edward Mungai's analysis of this. https://lnkd.in/d9EwjYKY

A recent report by the Debt Relief for Green and Inclusive Recovery Project (DRGR) highlights that emerging countries face a daunting challenge. They're projected to spend a staggering $400 billion on servicing external debt this year alone. However, 47 of these nations risk default within five years if they divert funds towards climate adaptation and sustainable development, crucial for meeting 2030 Agenda and Paris Agreement goals. The report urges a global financial overhaul, debt forgiveness, and increased affordable financing to avert a looming crisis. It also calls for IMF to reconsider its debt sustainability assessments to factor in climate spending needs. Read more at: https://lnkd.in/d8Vim8Ez #thomaslloyd #renewableenergy #infrastructure #esg #netzero #asia #climatechange #sustainability #emergingmarkets #energytransition #electricity #biomass  

A new report warns that 47 emerging countries could face insolvency within five years due to high climate adaptation costs, with debt payments projected to reach $400 billion this year. Urgent global financial reforms and increased affordable financing are needed to prevent default and achieve sustainability goals. #ClimateCrisis

⚡Just in: A NEW report commissioned by the governments of Colombia, Kenya, France, and Germany lays bare the devastating effect of debt burdens for many vulnerable low-income countries. The Expert Review on Debt, Nature, and Climate reveals the extent to which unsustainable debt burdens, loss of in nature, and escalating climate change are compounding one another in a hugely destructive '‘triple crises''. Ali Mohamed, Special Envoy for Climate Change-Executive office of the President of Kenya & Chair of African Group of Climate Negotiators says: “This interim report highlights the inescapable reality that we cannot address the climate crisis without tackling the growing burden of debt. Vulnerable nations are caught in a cycle of borrowing to recover from climate disasters, further straining their economies. It’s time for the global community to come together, not just to restructure debt, but to recognize that investments in nature and climate resilience are fundamental to long-term economic stability. Our goal is to turn this vicious cycle into a virtuous one, where sustainable investments lead to prosperity and resilience, rather than debt distress.” ➡️ For more information, see the full report: https://lnkd.in/dnCiCP_w Center for Global Development, BNP Paribas, University of Massachusetts Amherst, World Resources Institute, Utrecht University, Boston University Global Development Policy Center, Inter-American Development Bank, CEB - Council of Europe Development Bank, Institute of Finance and Sustainability (IFS), Bruegel - Improving economic policy, Council on Foreign Relations, Resilient Earth Capital, Universidad de Los Andes, Universidad Internacional del Ecuador, The Liquidity and Sustainability Facility (LSF), LBBW 

📢 NEW Report! 📚 The interim report from the Expert Review on Debt, Nature, and Climate has just been released, drawing attention to the alarming ‘triple crisis’ of 📈soaring debt, 🌱declining nature, and 🔥increasing climate impacts. Commissioned by Colombia, Kenya, France, and Germany, this report highlights how vulnerable low- and middle-income countries are caught in a vicious circle of rising debt and intense climate shocks, hindering investments in climate resilience and sustainable development. 🌟 Ultimately, this 'vicious circle' means there is no addressing the climate crisis without addressing the debt crisis 📊 Key Findings include: ➡️ Nations are forced to borrow more for disaster recovery, worsening their debt situation.  ➡️ The current Debt Sustainability Frameworks of the World Bank and IMF fail to address the interconnectedness of debt, climate, and nature loss.  ➡️ Urgent reforms are needed to create a more sustainable fiscal environment. The report emphasizes that a ‘virtuous circle’ of inclusive and environmentally sustainable growth is achievable, but it requires strong domestic policies and international financial support. Vera Songwe and Moritz Kraemer, co-chairs of the Expert Review, urge the global community to unite in addressing these pressing challenges. 📚 Read the full interim report here ⬇️ 🔗 https://lnkd.in/dnCiCP_w #ClimateCrisis #DebtSustainability #SustainableDevelopment #WBGMeetings

Huge debt costs mean climate spending could make emerging nations insolvent Emerging countries will pay a record $400 billion to service external debt this year, and 47 of them cannot spend the money they need for climate adaptation and #sustainabledevelopment without risking default in the next five years, according to a report released on the eve of IMF/World Bank spring meetings. The report, from the Debt Relief for Green and Inclusive Recovery Project (DRGR) found that the 47 developing countries would hit external debt insolvency thresholds, as defined by the International Monetary Fund (IMF), in the next five years if they invested the necessary amounts to hit 2030 Agenda and Paris Agreement goals. A further 19 developing countries lack the liquidity to meet the spending targets without help, though they would not approach default thresholds. The report called for an overhaul of the global financial architecture, alongside debt forgiveness for the most at-risk countries and an increase in affordable finance and credit enhancements. "We need to mobilize more capital and bend down the cost of capital for countries if we're going to have any prayer to meet this," Gallagher told Reuters. #climateemergency #climatechange #esg #debt #insolvency #sdg #climatespending #sustainability #finance https://lnkd.in/gKHXmGWp

Save the date: Wednesday 28 February 2024, 15:00 – 16:30 CET on zoom EMEA Webinar on "The role of debt in #climate finance for the #Mediterranean and #Africa" In 2020, the Euro-Mediterranean Economists Association - EMEA launched the #DebtTransparency Initiative to enhance knowledge about debt related issues, particularly in low-income countries (LICs) and lower-middle-income countries (LMICs). Under this initiative, the webinar will explore recent developments in terms of debt trends and initiatives in the Mediterranean and Africa, and the expectations for the next #G20. https://lnkd.in/dsbKyMD4

A great Tuesday morning! What a day! If you don’t know what " climate-sovereign debt doom loop" is, then this is a post for you! Not one country is on track for a 1.5C future based on 2030 national pledges for cutting emissions, according to the Assessing Sovereign Climate-related Opportunities and Risks Project. Climate risks increase the cost of debt, making debt servicing more difficult. At the same time, climate-related damages reduce fiscal space, making it difficult to secure debt financing for mitigation or adaptation policies to reduce climate risks. A doom loop emerges, with low-income countries particularly vulnerable.  What’s more, the review of 70 countries’ emissions and policies shows “no overwhelming trend” that wealthier countries are doing a better job of tackling climate change.  Investors largely agree that climate risks aren’t fully priced into markets, and academics are now studying what they’re calling the climate-sovereign debt doom loop to calculate the potential costs to countries. The 70 targeted for review make up 100% of the three main sovereign debt bond market indexes, according to the report.   The report’s authors concluded that more than 80% of wealthy countries aren’t contributing their proportional share of an annual $100 billion international climate finance goal, which was increased to $300 billion at the COP29 climate summit in Baku. Have a great debt doom loop Tuesday! https://lnkd.in/dZ7nrNRY

The Global South is facing financial collapse. 47 highly indebted countries are at risk of insolvency if they increase their investment in climate protection and development. But if they don't, the consequences would be even worse. It is time for debt reductions! These are the findings of a recent study by the Debt Relief for Green and Inclusive Recovery Project, which you can access here ➤ https://lnkd.in/eZapHV-B #debtrelief #climate #agenda2023 #parisagreement #drgr