A debt-for-climate swap plan is expected from the International Monetary Fund and the World Bank ahead of COP26, writes Leigh Elston for Energy Monitor.
If fit for purpose, it could be highly effective in addressing spiralling low and middle-income country debt and the climate crisis.
CGFI’s deputy director Nicola Ranger comments: “If these countries, some of whom are growing very rapidly, make investments now in higher-carbon infrastructure, they will be locked into that infrastructure for decades to come, which will increase their transition and resilience risks.
“There is a real and urgent need to support these countries now on a low-carbon development pathway as part of the Covid recovery.”
