CCXG global forum, September 2024, Rachel Morris

Presentation from the CCXG global forum

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NCQG timeframes
Key considerations and interlinkages
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Rachel Morris
Policy Analyst
OECD Development Co-operation Directorate
HybridCCXG Global Forum | 17-18 September2024

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The state of debt (un)sustainability in developing countries
•[Key facts and figures from Key Issues Note]
•[Update on the Global Outlook on Financing for Sustainable Development 2025]

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Parallel processes addressing the debt crisis
There are many initiatives addressing sovereign debt in developing countries, including:
•The G20 Common Framework for Debt Treatments aims to coordinate debt relief for low-
income countries but has faced challenges, including slow implementation and limited
involvement of private creditors.
•The Global Sovereign Debt Roundtable (GSDR) brings together stakeholders to improve
debt restructuring processes and outcomes, with regular discussions on specific cases of
debt distress.
•Other notable initiatives include domestic law reforms in creditor countries, such as the UK’s
Debt Relief Act and the Bridgetown Initiative, focused on sustainable debt solutions.
→The NCQG can encourage enhanced coordination with these initiatives and push for
stronger engagement with private creditors to alleviate debt burdens while supporting climate
action.

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Parallel processes addressing the debt crisis
Several financial instruments can address both climate finance needs and debt sustainability,
including:
•Debt-for-climate swaps allow countries to redirect debt repayments to climate-related
projects. These have been successfully implemented in countries like Belize and Seychelles
but are complex and mostly applicable to smaller economies.
•Climate Resilient Debt Clauses (CRDCs) allow for temporary suspension of debt payments
when climate disasters occur. They are being implemented by institutions like the World
Bank, though they provide only temporary relief.
•Special Drawing Rights (SDRs) issued by the IMF offer additional liquidity for climate
activities, but access is limited, and their impact on private finance is uncertain.
→The NCQG can promote the use of these instruments, encouraging innovative solutions that
align climate finance with debt sustainability efforts in developing countries.

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THANK YOU!
http://oe.cd/ccxg
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