External publications

Defaulting on development and climate: debt sustainability and the race for the 2030 Agenda and Paris Agreement

Zucker-Marques, Marina / Ulrich Volz / Kevin P. Gallagher
External Publications (2024)

London, Boston/MA, Berlin: Soas University of London/Boston University/Heinrich Böll Stiftung

Volltext/Full text

In this report we perform an enhanced global external debt sustainability analysis to estimate the extent to which EMDEs can mobilize the G20 independent Expert Group recommended levels of external financing without jeopardizing debt sustainability. We find that among 66 of the most economically vulnerable countries, 47 countries with a total population of over 1.11 billion people will face insolvency problems in the next five years as they seek to ramp up investment to meet climate and development goals. Debt relief must be administered for these countries to stand a chance to invest in a climate-resilient future and achieve their development aspirations.