Debt-for-Climate Swaps - Innovative Financial Instruments for Public Debt Management

When: 31 August 2022 at 16:30-17:30 (GMT+1)

Where: In-person capacity is full. Register here to access online.

The world is facing a triple crisis of debt, climate change and biodiversity loss. The impacts of the COVID-19 pandemic on the economic system have increased volatility in developing country markets, particularly in Africa, where high levels of debt are increasing the levels of vulnerability in the region.

Several countries in Africa are now considering debt-for-climate swaps as an innovative solution to manage mounting public debts, climate change challenges – particularly underfunded adaptation action - and COVID-19 recovery. Traditionally, these instruments represent an exchange of the existing debt contract with a new one, where the previous contract is normally discounted. The proceeds from the discount or foregone debt would then be used in an agreed manner to fund project to tackle climate change.

This side event, co-organized by UNEP, IIED, the Commonwealth Secretariat, and the Government of eSwatini, brings together governments and experts to exchange in-country experiences to design effective debt-for-climate swaps, including the advantages of this innovative financing instrument for advancing action for climate adaptation.

Learn more about UNEP’s work in adaptation here.

For any questions, please reach out to Marcus.Nield@un.org