Defaulting on Development and Climate
Time is running out to achieve the goals set out in the United Nations 2030 Agenda for Sustainable Development and the Paris Agreement.
Not meeting these goals will have tragic impacts on the lives of present and future generations; yet, emerging market and developing economies (EMDEs) are facing conditions that inhibit their ability to mobilize investment, including historic levels of external debt, higher interest rates and low growth prospects to 2030.
The Independent Expert Group to the Group of 20 (G20) estimates that EMDEs excluding China will need to mobilize three trillion U.S. dollar annually, one trillion U.S. dollar from external sources and two trillion U.S. dollar domestically, by 2030 to achieve the 2030 Agenda and the Paris Agreement.
Our new report performs an enhanced global external debt sustainability analysis (DSA) to estimate the extent to which EMDEs can mobilize the G20 Independent Expert Group recommended levels of external financing without jeopardizing debt sustainability.
They find that of 66 economically vulnerable EMDEs, 47 EMDEs with a total population of over 1.11 billion people will face insolvency problems in the next five years if they seek to ramp up investment to meet climate and development goals.
Here you can find the dossier on the DRGR project.
Product details
Table of contents
Executive Summary
Introduction
External Debt Dynamics in Emerging Market Developing Economies
The Debt Relief for a Green and Inclusive Recovery Proposal
Toward a New Common Framework: Criteria and Eligibility
A Fair Comparability of Treatment Proposal
Conclusion
References
Technical Appendix I:
External Debt Sustainability Analysis
Appendix II: Guarantee Fund