Climate Resilient Debt Clauses: A Call to Action

4 Dec

12:30-13:30 GST

In the wake of disasters countries face painful trade-offs between rebuilding their communities and making debt repayments. Climate Resilient Debt Clauses (CRDCs) allow debt service to be paused to provide breathing space when countries are hit by climate catastrophes, such as hurricanes and floods, and pandemics. In June the UK and Barbados, together with Ghana, France, US and Spain, launched a call for bilateral, multilateral and private sector creditors to offer Climate-Resilient Debt Clauses by the end of 2025, with a group of early movers offering the clauses by COP28, so that borrowing nations have the necessary fiscal room to respond fully to shocks.
COP28 Presidency
Inter-American Development Bank (IDB)
Commonwealth & Development Office UK
B8: Plenaries & Meeting Rooms - Presidency Roundtable - Al Saih