Climate change's impacts are escalating globally. Embattled countries need enormous investment to allow them to transition to clean energy and adapt to a rapidly changing climate. While finance for sustainable, low-carbon development is critical, it must be channelled in a way that does not increase the debt burdens of countries already in significant distress.
Country platforms are mechanisms for countries to deliver their own priorities for sectoral transformation with international support. If they are well-designed, delivering growth or enhancing resilience, they can support debt sustainability across both short and long terms. But the current generation of platforms has depended largely on new debt. As more and more countries start to develop their own platforms, it is vital that they fully integrate fiscal assessments into their platform design.
This working paper lays out a suite of recommendations for both countries and international partners to create country platforms that support debt sustainability.
Meet the Authors:
