Many African countries are at high risk of debt distress, especially due to the COVID-19 pandemic, and will need to decrease their debt levels to have the fiscal space to invest in climate resilience . As of mid-2021, the G20's Debt Service Suspension Initiative is providing temporary relief for repayment of bilateral credit, but this has largely not been taken up by private lenders . The total external debt-servicing payments combined for 44 African countries in 2019 were USD 75 billion , far exceeding discussed levels of near-term climate finance. Aligning debt relief with Paris Agreement goals could provide an important channel for increased financing for climate action, for example, by allowing African countries to use their debt-servicing payments to finance climate change mitigation and adaptation . Governments can disclose climate risks when taking on sovereign debt, and debt-for-climate resilience swaps could be used to reduce debt burdens for low-income countries while supporting adaptation and mitigation .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report