IIED at the 2025 World Bank Spring Meetings

IIED brought high-quality, evidence-based research to the Spring Meetings to inform policymaking and the development of practical, sustainable, joined-up solutions, led by local perspectives.

We aimed to build bridges between those most directly impacted by poverty and climate change and the decision makers, so that the quality as well as quantity of finance are part of the debate.

Key events

Tuesday, 22 April

Reducing the cost of capital in small, vulnerable states

Parallel event

Hosted by: ODI Global
Speakers: Emily Wilkinson (moderator), Gail Hurley, ODI Global; Anton Edmunds, IDB (co-chair); Henry Mooney, Inter-American Development Bank (IDB); Ritu Bharadwaj, IIED; Mark Flanagan, IMF; Scott Morris, Asian Development Bank; Ali Nasser Mohamed, Ambassador and Permanent Representative of the Maldives to the UN; Ian Durant, Caribbean Development Bank

A growing number of Small Island Developing States (SIDS) are experiencing debt challenges due to climate-related and other external shocks. SIDS’ vulnerability to shocks means that they are often borrowing not to advance sustainable development, but to recover previous development levels. And with access to concessional finance limited relative to need (and some SIDS ineligible), private debt is on the rise. And with poor credit ratings, this debt is expensive.

Reducing the cost of capital in SIDS can free up finance for urgent development spending including climate resilience. It can also help reduce aid dependence. IIED's Ritu Bharadwaj joined this roundtable discussion which featured SIDS government representatives sharing experiences of reducing the debt burden, followed by responses from development partners and a facilitated discussion.

Event coverage

Watch a full recording of the event below, while Isatou F Camara, director of climate finance at The Gambia’s Ministry of Finance and Economic Affairs, has also written her reflections on the Spring Meetings, reiterating the urgent need to transform international funding mechanisms.

Thursday, 24 April

Leveraging finance and trade to secure adaptation across low-income countries

Parallel event

Hosted by: IIED and ODI Global
Speakers: Laura Kelly, IIED (moderator); Isatou Camara, Directorate of Climate Finance, Ministry of Finance & Economic Affairs, The Gambia; Dirk Reinermann, The World Bank; Christopher Marks, MUFG Gaia Fund; Matt Eldridge, Gates Foundation; Jodie Keane, ODI Global

Low-Income Countries (LICs) that are particularly vulnerable to the impacts of climate change must be prepared to adapt; however this is not addressed within international trade (where the damaging effects of new trade barriers tend to overshadow the powerful role of trade and investment to secure resilient value chains and climate change adaptation) and financial architecture reform discussions (where there are opportunities through the provision of zero/low interest loans and the leveraging of private finance, to support climate resilience, poverty reduction and economic growth).

This event seeks to bring together key stakeholders for a discussion on how finance and trade-related reforms can leverage the resources needed for adaptation and resilient value chain development within LICs.

The discussions will focus on the roles that actors in the international architecture are playing or could play in increasing the quantity and quality of finance in support of investment to boost productive capacities and the reduction of economic and environmental vulnerabilities.

Resilient and food secure: scaling social protection with country platforms and debt sustainability efforts

Parallel event

Hosted by: the government of Somalia, ALL ACT and others
Speakers: Government of Somalia and World Bank representatives 

In Somalia, prolonged droughts have triggered famine risks, while debt limits its capacity to respond, leaving millions food insecure. Nepal faces rising food import costs, while in Malawi crop failures are exacerbating malnutrition. Social protection can offer a vital buffer – stabilising incomes and ensuring food access during crises. Anticipatory systems such as cash transfers, food aid and livelihood support triggered by early warnings are highly effective. Yet implementation is slow due to weak early warning systems, poor targeting data and severe financing constraints. Many countries are trying to bridge the gap through innovative financing mechanisms.

The Fund for responding to Loss and Damage (FRLD) can provide funding for social protection programmes. Country platforms can integrate climate finance, social protection and food security efforts, while the Global Small Island Developing States (SIDS) Debt Sustainability Support Service can alleviate debt pressures. Philanthropies can bridge financing gaps and support innovation while development banks provide large-scale funding, and local NGOs ensure community-level delivery.

This event will see the launch of a new paper ‘From conflict to resilience: tackling climate, debt and food insecurity in Somalia’, share evidence from 30 programmes on what is working, and feature a roundtable discussion on what can be done to scale up these efforts.

Further reading: Global Small Island Developing States (SIDS) Debt Sustainability Support Service: a new financial compact for resilient prosperity

Friday, 25 April

High-level roundtable: operationalising the Global SIDS Debt Sustainability Support Service

Side event

Hosted by: Co-chairs of the Strategic Advisory Group, H.E. Gaston Alphonso Browne, Prime Minister of Antigua and Barbuda, and H.E. Dr. Mohamed Muizzu, President of the Maldives, and ALL ACT

SIDS face unique challenges exacerbated by climate change and structural vulnerabilities in the global financial architecture. Despite contributing less than 1% of global greenhouse gas emissions, SIDS experience disproportionate economic losses due to climate-induced disasters. According to IIED’s research, the frequency and intensity of these disasters continue to escalate – coupled with debt distress, they threaten economic stability, undermine development gains and strain social services, climate adaptation and resilience-building investments.

To address these interlinked challenges the Global SIDS Debt Sustainability Support Service (DSSS) integrates debt sustainability solutions, resilience investments, climate insurance and capacity-building measures to help SIDS navigate the challenges of debt distress and climate vulnerability.

The operational phase of the DSSS focuses on establishing governance structures, securing institutional partnerships and mobilising financial resources for effective delivery. It aims to develop aggregate mechanisms for debt sustainability, attract private sector investment, design tailored insurance products and provide targeted capacity-building support to participating countries.

This high-level side event will build on these advancements by bringing together ministers, heads of state, and senior leaders from international finance, climate policy, and development to refine DSSS’s operational roadmap, mobilise partnerships and accelerate its expansion.

Further reading: Global Small Island Developing States (SIDS) Debt Sustainability Support Service: a new financial compact for resilient prosperity, Sinking islands, rising debts

Reducing the debt burden

Without meaningful reform, the international financial system will continue to deepen inequality, block progress on addressing climate change and reversing the loss of nature, and fail the people and places who have done the least to contribute to the crisis but are impacted the most.

Many of the poorest countries are mired in debt, with financing challenges preventing the urgently needed investment push in the Sustainable Development Goals; trapped in a debt cycle that blocks progress on climate resilience and development.

A financial system that keeps the poorest countries in perpetual debt is broken. IIED urges international financial institutions to recognise debt swaps as a key tool for tackling the climate crisis and creating a fairer, more sustainable global economy.

The Global Small Island Developing States (SIDS) Debt Sustainability Support Service offers a new financial compact for resilient prosperity, and debt swaps can be structured so they align with the good practices showed by the widely endorsed Heavily Indebted Poor Countries initiative. 

We must dismantle unfair trade rules, harmful subsidies and debt structures that perpetuate inequality and environmental harm. The issue paper ‘Aligning debt relief for climate and nature with the Principles of Effective Development Cooperation’ outlines ways international bodies can improve the effectiveness of debt for climate and nature swaps.

For more information on the urgent need to shift power to Indigenous Peoples, marginalised groups and frontline communities, ensuring they lead the decision-making and delivery of initiatives, read a reflection on common challenges in funding for both nature and climate.

It is essential that the amount of finance reaching communities is increased substantially in order to drive locally-led climate action, nature restoration, and loss and damage recovery.

Finally, don’t miss episode 28 of the Make Change Happen podcast, Money, politics and power – reforming the international financial architecture.