Breaking the debt burden: how to unlock finance for climate and nature

For too long, the international financial architecture has deepened inequality, trapped nations in poverty, and hindered progress on climate action and nature restoration.

Many of the countries most affected by the climate and biodiversity crises are burdened with debt that stalls progress on both short-term development needs and longer-term climate resilience. Urgent reforms must create a financial model that works for all.

Looking ahead to the International Monetary Fund/World Bank Spring Meetings and the Fourth International Conference on Financing for Development (FfD4), this IIED Debates event explored opportunities and challenges to debt reform for climate and nature outcomes.

The speakers discussed innovative solutions and policy recommendations to build a fairer and more resilient global financial system.

We asked how debt reform can be leveraged, what role debt relief mechanisms can play and what systemic changes are needed to overcome the biggest political and economic barriers.

The panel considered debt relief alignment with the Principles of Effective Development Cooperation, highlighting the roles of governments, international institutions and private sector actors in ensuring that financial resources reach the communities at the frontline of the climate and nature crises.