Loading

Debt And Climate: Empowering Debt For Climate Swaps To Finance The Green Transition In Africa

Malancha Chakrabarty (Observer Research Foundation), Karim EI Aynaoui (Policy Center for the New South), Youssef El Jai (Policy Center for the New South), Badr Mandri (Policy Center for the New South), Manish K Shrivastava (The Energy and Resources Institute (TERI))

Abstract

In a global context marked by unprecedented economic and environmental challenges, Africa stands at a crossroads. The rapid rise in public debt, coupled with the climate emergency, imposes a dual constraint on the continent’s countries, severely limiting their ability to pursue sustainable development and mitigate the effects of climate change. This critical situation calls for innovative and effective solutions capable of transforming obstacles into opportunities for a more resilient and prosperous future. In the face of this reality, it is imperative to rethink traditional financing mechanisms and explore innovative approaches that promote both debt relief and climate action. In this context, Debt-for-Green Swaps are emerging as a promising strategy, offering a viable path to reduce financial vulnerability while accelerating investments in environmental sustainability.

Authors

Malancha Chakrabarty (Observer Research Foundation), Karim EI Aynaoui (Policy Center for the New South), Youssef El Jai (Policy Center for the New South), Badr Mandri (Policy Center for the New South), Manish K Shrivastava (The Energy and Resources Institute (TERI))

Latest Policy Briefs

Register for Updates

Would you like to receive updates on the Global Solutions Initiative, upcoming events, G7 and G20-related developments and the future of multilateralism? Then subscribe here!

1 You hereby agree that the personal data provided may be used for the purpose of updates on the Global Solutions Initiative by the Global Solutions Initiative Foundation gemeinnützige GmbH. Your consent is revocable at any time (by e-mail to contact@global-solutions-initiative.org or to the contact data given in the imprint). The update is sent in accordance with the privacy policy and to advertise the Global Solutions Initiative’s own products and services.