Credit Enhancement
for sovereigns to contend
with nature and climate crises
About
Developing and emerging market countries are grappling with a triple crisis, encompassing high debt burdens, escalating costs of climate change and related disasters, and critical biodiversity loss.
The intersection of these challenges creates a barrier for these countries to address their nature and climate-related needs effectively.
The world’s largest multilateral development banks and other international financial institutions have agreed to mobilize credit enhancement for sustainable climate & nature-linked sovereign financing at the UN Climate Conference in 2023.
During COP28, a Task Force on Credit Enhancement of Sustainability-Linked Sovereign Financing for Nature and Climate was launched to tackle climate, nature and debt challenges. The Credit Enhancement Task Force is jointly co-chaired by IDB and DFC.
The Task Force aims to:
Credit Access
Access and Affordability
Improve the access and affordability of credit enhancement instruments.
Access, Efficiency and Platform
Effective And Efficient
Making nature- and climate-linked transactions effective and efficient.
MDB Platform
Communication And Collaboration
Provide a platform for Multilateral Development Banks to communicate and coordinate actions.
It is hoped that by removing the existing silos between multilateral development banks we can encourage a consistent and harmonised approach to developing impactful credit enhancement solutions.
Sustainability-Linked Sovereign Debt Hub is acting as the secretariat for the new Task Force.
Resources
Participants
