The fact is $100 billion a year is woefully insufficient to cover the cost of climate change adaptation, let alone financing clean energy transitions across the developing world. The adaptation price tag alone could reach $300 billion a year by 2030. According to the IEA, the cost of financing clean energy transitions could exceed $1 trillion a year by the end of the decade. These are big numbers. But they are achievable.
CGD Policy Blogs
Last Friday, the Government of Belize alongside the U.S. Development Finance Corporation (DFC) and the Nature Conservancy (TNC) announced the financial close of the largest blue bond for Ocean Conservation to date. The program enables Belize to convert its existing Eurobond (i.e. foreign currency bonds issued on the international market) into blue debt that it will use to implement its national marine conservation agenda.
CGD colleagues raised questions and concerns at the time of the announcement. In weighing his possibly presidency, an especially salient question becomes: can Claver-Carone deliver a general capital increase (GCI)?
DFIs are well positioned to address five pressure points in the COVID-19 response that need financing. Let’s unpack these one by one.
Revisiting HIPC as Part of the COVID-19 Response: How did Commercial Debt Relief for Poorest Countries Work Last Time?
The G20 is calling on commercial creditors to follow their lead and extend a moratorium on their debt. But if past is precedent external commercial debt could be shaping up to be major fault line in the debt relief process moving forward.