V20 Webinar on Debt and Climate
V20 Webinar on Debt and Climate
September 14th, 8:00-9:30 AM EST
At the forefront of the climate crisis, Climate Vulnerable Countries have long felt the impact of climate change on their economies, losing an estimated $525 billion in output because of climate change in the last two decades. Macro-financial risks stemming from climate change impact countries’ debt sustainability trajectories, their costs for accessing capital markets, and their available space to make investments towards building resilience. Changes in global financial conditions triggered by interest rate increases in advanced economies will further increase borrowing costs and threaten debt sustainability. Against this backdrop, it is important to investigate the links between debt sustainability, fiscal space available, and climate change.
This event will highlight research from the Task Force on Climate, Development and the IMF , of which the V20 is a member. The Task Force will provide an overview of the current debt situation in V20 countries, upcoming payments, and a breakdown of creditors.
The first presentation will provide a glimpse into some of the challenges of measuring and understanding the compounded impacts of climate risks on macroeconomic performance and debt sustainability, using Barbados as an example. The second presentation will feature remarks on climate change and debt sustainability from the point of view of Barbados. The third presentation will discuss how debt sustainability limits that are arbitrarily set to low can become self-fulfilling prophecies as they limit cost and access of liquidity.
Irene Monasterolo, EDHEC Business School, Régis Gourdel, Vienna University of Economics and Business
This presentation will discuss the interaction between physical climate risks and transition risks looking at the case of Barbados. Barbados vulnerable to both physical risks, as well as to spillover transition risks that arise from its dependency on tourism, and industry that would be significantly impacted by the mitigation policies of other countries.
2. Debt-for-climate swaps: analysis, design and implementation
Marcos Chamon, Deputy Division Chief, Debt Policy Division, Strategy and Review Department, IMF
This presentation will feature a newly released working paper that compares debt-for-climate swaps with other alternatives. It identifies specific conditions when debt-for-climate swaps could be useful and emphasizes the usefulness of debt-for-climate swaps when the primary constraint to climate investment is the lack of fiscal space.
3. Climate change and debt sustainability: a perspective from Barbados
Avinash Persaud, Special Envoy to the Prime Minister of Barbados on Investment and Financial Services
This presentation will explore the opportunities and challenges facing Barbados as it seeks to be the first 100% green and fossil-fuel free island-state in the world by 2030. Global efforts to facilitate and enable the development aspirations of countries like Barbados will also be discussed.
The event will be moderated by Sara Jane Ahmed, V20 Secretariat.
RSVP: For V20 members only
Registration Link: https://us02web.zoom.us/webinar/register/WN_IEq7tgovQ-q5VTLJeVcx_A
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