cover image: In a global context marked by unprecedented economic and environmental challenges,

In a global context marked by unprecedented economic and environmental challenges,

9 Sep 2024

The first type is the bilateral swap, where a creditor country agrees to cancel part of a debtor country's debt in exchange for the debtor's commitment to use the freed-up funds to finance approved projects. [...] 5 Recommendations to the G20 As African countries are increasingly seeking a debt resolution mechanism with green conditionality, we build on the proposal of a debt for climate relief by exploring the different financial products that can be used to enhance the efficiency of climate swaps and attract private sector participation. [...] The role of guarantor played by the multilateral development system strengthens the credibility of the mechanism and attracts the participation of the private sector. [...] Also, the mechanic around debt swaps needs to be fully transparent and in pushing for these swaps, the G20 also needs to work on a clear taxonomy and standardization of the contract. [...] On another note, the G20-driven green rating agency can contribute to the harmonization of practices in green project management, beyond its role as guarantor of the perennity of the swap arrangement.

Authors

Gabriella Cavalcanti

Pages
12
Published in
Morocco