ESCWA Publication: E/ESCWA/CL3.SEP/2024/INF.1
Country: Arab region
Publication Type: Information material
Cluster: Shared Economic Prosperity
Focus Area: 2030 Agenda, Climate change, Debt and fiscal policy, Financing for development, Macroeconomics
Initiatives: Integrated national financing frameworks, Climate/SDGs Debt Swap
SDGs: Agenda 2030
Keywords: Climate, Debt, Sustainable development, Technical cooperation, Climate change, Regional commissions, Sustainable development, Debt conversions, Stakeholder engagement, Technical cooperation, Resilience, Financial institutions
Climate/SDGs debt swap mechanism
December 2020
The public budgets of developing countries of the Arab region are pressed due to rising external debt and debt service, which can put expenditure for climate action and the Sustainable Development Goals (SDGs) at risk. The adverse impacts of COVID-19 have further exacerbated fiscal pressures. Given the urgency of the situation, ESCWA has launched a Climate/SDGs Debt Swap Initiative to support debt relief and improve climate finance in middle-income countries in the region that are facing high and increasing debt burdens. A debt swap mechanism (DSM) was developed in 2020. A wide range of stakeholders, including high level representatives from member States, representatives from the Paris Club, global experts and development partners discussed the ESCWA DSM in an expert group meeting in December 2020.
The outcome of the meeting was fruitful and highlighted the urgent need for and usefulness of the ESCWA initiative. Following the meeting, ESCWA operationalized the initiative with selected member States. The initiative provides a “win-win” opportunity to foster development cooperation between debtors, creditors and donors toward achieving progress on climate action and the SDGs.
Related content
2030 Agenda
, Climate change
, Debt and fiscal policy
, Financing for development
, Macroeconomics
,
The public budgets of developing countries of the Arab region are pressed due to rising external debt and debt service, which can put expenditure for climate action and the Sustainable Development Goals (SDGs) at risk. The adverse impacts of COVID-19 have further exacerbated fiscal pressures. Given the urgency of the situation, ESCWA has launched a Climate/SDGs Debt Swap Initiative to support debt relief and improve climate finance in middle-income countries in the region that are facing high and increasing debt burdens. A debt swap mechanism (DSM) was developed in 2020. A wide range of stakeholders, including high level representatives from member States, representatives from the Paris Club, global experts and development partners discussed the ESCWA DSM in an expert group meeting in December 2020.
The outcome of the meeting was fruitful and highlighted the urgent need for and usefulness of the ESCWA initiative. Following the meeting, ESCWA operationalized the initiative with selected member States. The initiative provides a “win-win” opportunity to foster development cooperation between debtors, creditors and donors toward achieving progress on climate action and the SDGs.
