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How Debt and Climate Change Pose a âSystemic Risk to the Global Economyâ
With dozens of countries struggling to manage both staggering debt and mounting climate disasters, some financial leaders are debating green debt relief.
Families rescued by boat arrived near near Beira, Mozambique, in March 2019 after Cyclone Idai caused widespread flooding.Credit.Tsvangirayi Mukwazhi/Associated Press
April 7, 2021, 5:00 a.m. ET
How does a country deal with climate disasters when itâs drowning in debt? Not very well, it turns out. Especially not when a global pandemic clobbers its economy.
Take Belize, Fiji and Mozambique. Vastly different countries, they are among dozens of nations at the crossroads of two mounting global crises that are drawing the attention of international financial institutions: climate change and debt.