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
- Pages
- 12
- Published in
- Morocco
Table of Contents
- Abstract 2
- Keywords 2
- Diagnosis 3
- Recommendations to the G20 6
- Recommendation 1 Through their efforts to push for more funding for climate G20 6
- Recommendation 2 The G20 in collaboration with the MDB system should create 7
- Recommendation 3 Debt swaps should leverage on african economies experience 7
- Recommendation 4 Wherever possible projects pipelines need to capitalize on local 8
- Scenario Of Outcomes 9
- References 11
