Search Climate Insights Directory

A statement by the African Forum and Network on Debt and Development (AFRODAD) criticizing the 2024 Annual Meetings of the IMF and World Bank, arguing that the global financial architecture and debt relief mechanisms favor rich creditor nations while imposing austerity on developing African countries.

This guide from the Climate Policy Initiative explains debt-for-climate swaps, which are financial mechanisms that cancel, exchange, or refinance sovereign debt in return for commitments to invest the savings into climate mitigation, adaptation, or conservation. The document details the different types of swaps (bilateral and tripartite), the internal and regulatory capacities required by Ministries of Finance to implement them, and the financial market conditions that influence their viability. It also outlines the risks, pricing drivers, and common challenges associated with these instruments, while providing examples of successful implementations in countries like Ecuador, Belize, and Seychelles.