Debt Relief for a Green and Inclusive Recovery
A debt crisis is emerging in the Global South at the precise moment when substantial investment is needed to meet shared climate and development goals. Yet, the G20 Common Framework has been unable to engage all creditor classes or link debt relief to climate and development.
How can emerging market and developing economies (EMDEs) find financial and fiscal stability while making the investments necessary to transition to sustainable and low-carbon economies? How does climate vulnerability impact a country’s debt sustainability? What level of restructuring is required across creditor classes for debt distressed EMDEs to achieve debt sustainability? And how could the G20 Common Framework be reformed to provide debt relief for a green and inclusive recovery?
A new report by Luma Ramos, Rebecca Ray, Rishikesh Ram Bhandary, Kevin P. Gallgher and William N. Kring for the Debt Relief for a Green and Inclusive Recovery (DRGR) Project analyzes new data on the level and composition of public and private external sovereign debt for EMDEs. It estimates the size of debt restructuring and suspension necessary for the 61 EMDEs in or at high risk of debt distress to achieve debt sustainability and put them on a path towards meeting their development goals and climate commitments.
The DRGR Project is a collaboration between the Boston University Global Development Policy Center, Heinrich-Böll-Stiftung and the Centre for Sustainable Finance, SOAS University of London that argues it is time for comprehensive debt reform. Utilizing rigorous research, the DRGR Project seeks to develop systemic approaches to both resolve the debt crisis and advance a just transition to a sustainable, low-carbon economy in partnership with policymakers, thought leaders and civil society around the world.
» Report: Guaranteeing Sustainable Development
» Here you can find the dossier on the DRGR project
Table of contents
External Debt Levels
Towards a New Common Framework