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Climate-related shocks are becoming more frequent and severe. More than ever, countries must invest in climate resilience and just transitions, but for many emerging market and developing economies, high debt burdens put achieving climate and development goals out of reach. A new policy brief explains the proposal advanced by the Debt Relief for Green and Inclusive Recovery (DRGR) Project.

The report analyzes new data on the level and composition of sovereign debt for emerging markets and developing economies and its relationship to climate vulnerability. It estimates the size of debt restructuring and suspension necessary for countries 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.