Dossier

Debt Relief for Green and Inclusive Recovery

At precisely the moment when substantial investment is needed to meet shared climate and development goals, a debt crisis is emerging in the Global South. However, existing debt relief initiatives are limited, both in the types of creditors brought to the table and the amount of debt relief on offer.

The Debt Relief for Green and Inclusive Recovery (DRGR) project, a collaboration between the Boston University Global Development Policy Center, Heinrich-Böll-Stiftung and the Centre for Sustainable Finance, SOAS University of London, argues it is time for comprehensive debt reform. Utilizing rigorous research, DRGR 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 from around the world.

For more information, please visit our website www.drgr.org

Events

14

October

Sovereign Debt, the Climate Challenge, and Geoeconomics: Pathways for a Sustainable Global Response

Expert talk Tuesday, 14. October 2025 in Washington D.C.

High-level Event at the IMF/World Bank Annual Meetings 2025

Article

Ein Event-Banner der Herbsttagung des Internationalen Währungsfonds und der Weltbank 2025.

The global debt crisis in many developing countries and its interconnectedness with the climate crisis

Analysis

In the climate negotiations at COP28, the question of financing the climate crisis will be at the forefront of the debate. However, many countries in the Global South are struggling to channel extra funds into climate action, due to the unfolding debt crisis.

Sarah Ribbert

A New Common Framework Toward Guaranteeing Sustainable Development

Report

A new report from the DRGR project analyzes new data on the level and composition of public and private external sovereign debt for emerging markets and developing economies and how this relates to climate vulnerability.

Rebecca Ray, Luma Ramos

The Debt-Climate Nexus

Commentary

As central banks tighten monetary policy, dozens of climate-vulnerable, highly-indebted countries teeter on the edge of a financial abyss. To address the confluence of economic and environmental disasters ravaging the Global South, the international community must provide immediate debt relief in exchange for green investments.

Ulrich Volz, Kevin P. Gallagher, Jörg Haas, Maria Fernanda Espinosa, Yueven Li, Anzetse Were, Shamshad Akhtar

Video Recordings

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Tackling the Triple Crisis of Debt, Climate, and Development

Recording from October 02. 2025

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Kicking the Can Down the Road or Meeting the Challenge? Tackling Sovereign Debt Problems Amid Global Shocks

Recording from April 23. 2025

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

Recording from May 14, 2024

Videos

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Sovereign debt Relief for climate vulnerable countries (#COP29 #G20)

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Debt Relief for Climate Vulnerable Countries explained [2023]

Main Reports

Skyscrapers and streets in front of wooded mountains, with yellow text above: Public Debt and Resilient Futures in Latin America and the Caribbean

Public Debt and Resilient Futures in Latin America and the Caribbean

Policy Brief

Latin America and the Caribbean stand at a crossroads of escalating debt, intensifying climate shocks, and stalled progress toward the Sustainable Development Goals. A new policy brief analyses the region's debt dynamics.

Ulrich Volz, Maria Fernanda Espinosa, Alex Dryden

Cover: Aerial view of a densely built coastal town in Africa, next to the sea and forested inland. Text is overlaid on the image.

Africa’s Vicious Cycle of Debt and Climate Change

Policy Brief

Across Africa, climate shocks and debt distress fuel each other in a vicious cycle. With external debt more than tripling since 2008, rising costs and plunging currencies are squeezing public finances - leaving little room for vital climate resilience investments.

Alexander Dryden, Ulrich Volz

Cover: Skyline of Nairobi at sunset, with a tall, modern building in the foreground. Text on the subject of debt crisis and green growth.

Giving Voice to The Silent Debt Crisis

Policy Brief

This policy brief details the challenging debt dynamics facing African nations and outlines several solutions that would improve their fiscal capacity to address the climate emergency and embark on a sustainable growth pathway.

Bogolo Kenewendo, Patrick Njoroge, Alexander Dryden

Defaulting on Development and Climate

Report

As this report shows, many countries will face insolvency problems if they seek to ramp up investment to meet climate and development goals.

Marina Zucker-Marques, Kevin P. Gallagher, Ulrich Volz

Vidoes: Presentation of Main Reports

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Background Papers

Debt Relief by Private Creditors: Lessons from the Brady Plan

Debt Relief for Green and Inclusive Recovery Project

This paper reviews the main features of and experiences with the Brady Plan, which in 1989 laid the foundation for the restructuring of the sovereign debt of mainly Latin American countries. It argues that the combination of credit enhancement for restructured debt, moral suasion, and tax as well as regulatory relief to encourage private creditors to participate in debt restructurings may provide a template for addressing today's sovereign debt problems.

Compensating Indebted Countries for Keeping Fossil Fuels in the Ground

Fossil fuel development, in particular oil and gas, promised vast riches in the past. Today it is exposing fossil fuel producers and their creditors to a massive stranded asset risk. Technological disruption with the rapid cost-reduction of renewable energy and storage technologies, in conjunction with the inevitability of increased climate action, are at the root of unprecedented uncertainties over the future of the sector.

Johnny West

Debt for Climate Opportunities in South Africa

South Africa’s economy, which was already in a precarious state before Covid-2019, has been tipped into full blown crisis by the pandemic. Gross national government debt is expected to be upwards of 86% within two years. Eskom, which is the country’s state-owned monopolistic and vertically integrated electricity utility, is a key driver of this escalating debt profile and lies at the heart of the economy’s structural challenges.

Emily Tyler, Celeste Renaud, Adam Roff

The Architecture for a Debt-for-Climate Initiative

This paper outlines some viable options for creating an architecture for a Debt-for-Climate Initiative (DCI). This is intended to enable countries to recover from the pandemic.

Annamaria Viterbo, Rishikesh Ram Bhandary, Kevin P. Gallagher

Debt-For-Adaptation Swap – Investment in Adaptation and Resilience

Low-income countries (LICs) are suffering from triple distresses: the mortal impact of Covid-19, increasing debt burdens, and climate change impacts. This paper brings the debt-for-adaptation swap into play as an alternative source to restore countries' ability to act and be resilient to climate change.

Mizan R. Khan

Linking Debt Relief and Sustainable Development: Lessons from Experience

This paper examines the experience with debt-for-development swaps and major debt relief processes in order to draw some lessons that could help shape a debt-for-climate initiative (DCI).

Aldo Caliari

Scaling-up Ecosystem-based Debt-for-Climate Swaps: From the Millions to the Billions

This paper discusses how debt-for-climate swaps can be useful “triple-win” instruments to address the climate crisis by ensuring the protection of valuable terrestrial and marine ecosystems, while also contributing to debt sustainability.

Newsletter Debt Relief for Green and Inclusive Recovery

Dossiers

Infrastructure and Investment policy

Ein Kompass liegt auf einem Blatt Papier

Dossier

Debt Relief for Green and Inclusive Recovery

Events

Sovereign Debt, the Climate Challenge, and Geoeconomics: Pathways for a Sustainable Global Response

Global Public Debt: Will Reforms Come Soon?

Overcoming Latin America’s Mounting Debt Crises

Africa's Dilemma: Pay Off Debts or Invest In Climate Protection?

The global south’s debt crisis is thwarting climate ambition

The global debt crisis in many developing countries and its interconnectedness with the climate crisis

A New Common Framework Toward Guaranteeing Sustainable Development

The Debt-Climate Nexus

Tackling the Triple Crisis of Debt, Climate, and Development - Heinrich-Böll-Stiftung

Panel discussion: Tackling Sovereign Debt Problems Amid Global Shocks - Heinrich-Böll-Stiftung

Investing for the Future - How Debt Relief Can Help Make Space for Climate and Development Goals - Heinrich-Böll-Stiftung

Videos

Sovereign debt Relief for climate vulnerable countries (#COP29 #G20) - Heinrich-Böll-Stiftung

Debt Relief for Climate Vulnerable Countries explained [2023] - Heinrich-Böll-Stiftung

Main Reports

Public Debt and Resilient Futures in Latin America and the Caribbean

Africa’s Vicious Cycle of Debt and Climate Change

Giving Voice to The Silent Debt Crisis

Defaulting on Development and Climate

Vidoes: Presentation of Main Reports

Debt Relief for a Green and Inclusive Recovery - Heinrich-Böll-Stiftung

Key Messages - Launch Debt Relief for a Green and Inclusive Recovery Report - Heinrich-Böll-Stiftung

Recording - Launch of the Report Debt Relief for a Green and Inclusive Recovery - Heinrich-Böll-Stiftung

Background Papers

Debt Relief for Green and Inclusive Recovery Project

Compensating Indebted Countries for Keeping Fossil Fuels in the Ground

Debt for Climate Opportunities in South Africa

The Architecture for a Debt-for-Climate Initiative

Debt-For-Adaptation Swap – Investment in Adaptation and Resilience

Linking Debt Relief and Sustainable Development: Lessons from Experience

Scaling-up Ecosystem-based Debt-for-Climate Swaps: From the Millions to the Billions

Newsletter

Newsletter Debt Relief for Green and Inclusive Recovery

Dossiers

Infrastructure and Investment policy

Transformative Economy

Global Cooperation

Dossier

Debt Relief for Green and Inclusive Recovery

Events

Sovereign Debt, the Climate Challenge, and Geoeconomics: Pathways for a Sustainable Global Response

Global Public Debt: Will Reforms Come Soon?

Overcoming Latin America’s Mounting Debt Crises

Africa's Dilemma: Pay Off Debts or Invest In Climate Protection?

The global south’s debt crisis is thwarting climate ambition

The global debt crisis in many developing countries and its interconnectedness with the climate crisis

A New Common Framework Toward Guaranteeing Sustainable Development

The Debt-Climate Nexus

Tackling the Triple Crisis of Debt, Climate, and Development - Heinrich-Böll-Stiftung

Panel discussion: Tackling Sovereign Debt Problems Amid Global Shocks - Heinrich-Böll-Stiftung

Investing for the Future - How Debt Relief Can Help Make Space for Climate and Development Goals - Heinrich-Böll-Stiftung

Videos

Sovereign debt Relief for climate vulnerable countries (#COP29 #G20) - Heinrich-Böll-Stiftung

Debt Relief for Climate Vulnerable Countries explained [2023] - Heinrich-Böll-Stiftung

Main Reports

Public Debt and Resilient Futures in Latin America and the Caribbean

Africa’s Vicious Cycle of Debt and Climate Change

Giving Voice to The Silent Debt Crisis

Defaulting on Development and Climate

Vidoes: Presentation of Main Reports

Debt Relief for a Green and Inclusive Recovery - Heinrich-Böll-Stiftung

Key Messages - Launch Debt Relief for a Green and Inclusive Recovery Report - Heinrich-Böll-Stiftung

Recording - Launch of the Report Debt Relief for a Green and Inclusive Recovery - Heinrich-Böll-Stiftung

Background Papers

Debt Relief for Green and Inclusive Recovery Project

Compensating Indebted Countries for Keeping Fossil Fuels in the Ground

Debt for Climate Opportunities in South Africa

The Architecture for a Debt-for-Climate Initiative

Debt-For-Adaptation Swap – Investment in Adaptation and Resilience

Linking Debt Relief and Sustainable Development: Lessons from Experience

Scaling-up Ecosystem-based Debt-for-Climate Swaps: From the Millions to the Billions

Newsletter

Newsletter Debt Relief for Green and Inclusive Recovery

Dossiers

Infrastructure and Investment policy

Transformative Economy

Global Cooperation

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