Climate Resilient Debt Clauses (CRDCs)

Climate shocks are increasingly prevalent across the globe. These shocks can severely impact a country’s ability to service its debts in the aftermath, and debt service payments can crowd out vital spending on response and recovery. Climate Resilient Debt Clauses (CRDCs) could play a role in providing valuable fiscal breathing space in the aftermath of a climate shock by automatically deferring debt repayments. This event will hear why CRDCs are needed and explore their role for all creditor types, including the private sector, export credit agencies and multilateral development banks.