{"id":28351,"date":"2024-09-12T10:14:19","date_gmt":"2024-09-12T14:14:19","guid":{"rendered":"https:\/\/www.bu.edu\/gdp\/?p=28351"},"modified":"2024-09-25T15:17:22","modified_gmt":"2024-09-25T19:17:22","slug":"breaking-the-vicious-cycle-of-debt-and-climate-crisis-debt-relief-for-a-green-and-inclusive-recovery","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/gdp\/2024\/09\/12\/breaking-the-vicious-cycle-of-debt-and-climate-crisis-debt-relief-for-a-green-and-inclusive-recovery\/","title":{"rendered":"Breaking the Vicious Cycle of Debt and Climate Crisis: Debt Relief for a Green and Inclusive Recovery"},"content":{"rendered":"
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Dar es Salaam, Tanzania. Photo by Moses Londo via Unsplash<\/figcaption><\/figure>\n

It is now widely recognized that emerging market and developing economies (EMDEs) excluding China need to mobilize $3 trillion annually \u2013 $1 trillion from <\/span>external sources and $2 trillion domestically \u2013 by 2030 to meet shared climate and <\/span>development goals. These investments are not only essential to avoiding the relative <\/span>catastrophic economic, social and environmental costs of inaction, but can also transform the world economy into one that is low-carbon and more equitable and resilient.<\/span><\/p>\n

But on the opposite trend, EMDEs are currently slashing essential basic services and <\/span>forgoing investments in education, health and climate resilience to meet record levels of <\/span>external public debt service. What is more, given high interest rates, mobilizing much needed investments at high costs could quickly build up debt vulnerabilities and deepen a debt crisis. With the Brazilian G20 Presidency, there is a crucial opportunity to reshape the system to better serve the needs of developing countries.\u00a0<\/span><\/p>\n

In a <\/span>new Think20 (T20) policy brief<\/i><\/b><\/a>, Marina Zucker-Marques<\/a>, Maria Fernanda Espinosa and J\u00f6rg Haas propose significant reforms to make the G20 Common Framework for Debt Treatments more efficient, inclusive and oriented towards climate and development goals.\u00a0<\/span><\/p>\n

Policy Recommendations:<\/strong><\/h5>\n