Debt for Climate Swaps: Caribbean Outlook
Caribbean SIDS are among the most heavily indebted per capita developing countries in the world and are also highly vulnerable to the impacts of climate change. Public debt significantly restricts capacity and fiscal space to build resilience to climate change and thus undermines debt sustainability and economic growth. Caribbean SIDS are tasked with addressing low and stagnated growth, high public debt and vulnerabilities to climate change impacts. This briefing looks at how debt for climate swaps may provide an avenue for SIDS to address debt challenges while also increasing resilience to climate change.