Concerns have also been raised about the interactions between debt service, COVID economic recession and post-COVID recovery in developing countries . Debt service grows as a proportion of national budget during recession, reducing scope for investment in recovery, is a self-reinforcing cycle. It has been suggested that linking debt relief to Paris-aligned objectives can act as an additional source of climate finance . The G20 has begun addressing this debt crisis through its Debt Service Suspension Initiative and the Common Framework for Debt Treatments . It has been suggested that these initiatives could be expanded to prioritise climate-focused debt-relief instruments and to include more countries . If debt relief is used to invest in national instrument for green and inclusive recovery, national ownership of the use of the finance can occur, avoiding some of the negative connotations of historical debt restructuring .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report