Synopsis
Addressing high and unsustainable debt levels is a precondition for securing a livable planet for all. Countries need sufficient fiscal space and borrowing capacity to invest in development, climate and nature, particularly given the higher upfront investment needs associated with the transition to more sustainable and resilient economic models. Shifting on to more climate-compatible and nature-positive economic paths is the only way to minimize long-term risks and costs, and secure prosperity for all. Debt is an essential fiscal tool in this endeavor. But many emerging markets and developing countries (EMDCs) are not able to mobilize the necessary resources because of high debt burdens and costs.
