World Bank, IMF Eye Ways to Link Debt Relief to Climate Change Spending

WASHINGTON - The World Bank and the International Monetary Fund (IMF) are planning to launch a platform to advise poor countries on funding climate and conservation activities, amid a broader push that could link such spending to debt relief, according to a draft document seen by Reuters.

The advisers would include U.N. officials, nongovernmental organizations, private investors and even ratings agencies with expertise in sourcing investment, including grants, low- or no-interest loans and conditional debt relief, the document says. The initiative reflects growing recognition that the economic turmoil of the COVID-19 pandemic has exacerbated budget constraints and debt challenges that hamper the ability of some countries to transition to clean energy, protect wildlife or make infrastructural changes to prepare for climate impacts. "Unlike other initiatives out there that focus on one project at a time, this will focus on systematically changing whole economies," said one source familiar with the initiative, who added that the platform aims for a more holistic approach to "the triple crisis of debt, climate change and biodiversity loss."