🎯Explore with different types of financiers the optimal conditions for debt-for-nature swaps to be most effective.
According to the World Bank, 39 developing countries present a high risk of over-indebtedness or are already in this situation, compared to only 31 in 2018. At the same time, the impacts of climate change are increasingly significant in these countries, which are more strongly affected than developed countries.
To reach the required scale, sustainability-linked sovereign finance (such as debt-for-nature/climate swaps, sustainability-linked bonds) must be combined with credit enhancement mechanisms such as credit guarantees.
The improved ratings provided by guarantees allow vulnerable, lower-rated states to attract sufficient, lower-cost financing to ease debt service burdens and finance urgent climate and biodiversity programs.
It is possible to deploy credit enhancement for sovereign borrowing on a much larger scale among developing countries. These instruments represent only a fraction of the international financial institutions commitments.
This topic was discussed during the summit for a global financial pact held in Paris in June 2023. The main international financial institutions, including the African Development Bank and the MIGA, called for a coordinated approach to overcome the obstacles to deploying these solutions on a large scale.
The panel aims to discuss existing solutions for developing countries and to call for the mainstreaming of instruments to mobilize climate and environmental financing.
Moderation: Hélène Lanier, Managing Director – 2DII
- Eike Behre, Expert for Ecosystem-based Disaster Risk Reduction & Adaptation, Climate Risk Analytics & Economics of Climate Adaptation (ECA) United Nations University – Institute for Environment and Human Security (UNU-EHS)
- Daniela Chiriac, Manager Climate Finance, Climate Policy Initiative (CPI)
- Jahan Chowdhury, Global Lead for Environment and Climate, International Fund for Agricultural Development (IFAD)
- Svetoslav Gatchev, Managing Director, Sustainable Debt, The Nature Conservancy (TNC)
Pavillion Francophonie (on site)
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