Are debt sustainability frameworks compatible with climate and nature action? Findings from a new dataset of the IMF’s Debt Sustainability Analyses
Climate change and nature degradation pose existential threats to the wellbeing of people and the planet. It is indisputable that addressing these problems requires financial investment. But several regions across the world are experiencing ever-narrowing fiscal space and are highly vulnerable to debt, inhibiting their ability to cope with climate-related emergencies. This CETEx report focuses on the degree to which assessments of debt sustainability are compatible with ambitious climate and nature action.