Protecting against sovereign debt defaults under growing climate impacts: role for parametric insurance

Working paper

, 24 pages

PDF (629.91 KB)

Language:

English

Published: April 2023

Publisher(s):

IIED

Area(s):

Niger, Myanmar (Burma), Sudan, Mozambique, Mali

ISBN: 9781837590308

Product code:21426IIED

About IIED's publications

The climate crisis is pushing least developed countries into over-indebtedness, amplifying their disparity with developed countries. Fundamental changes are needed to re-engineer, regulate, and equalise global debt and growth.

Parametric insurance for sovereign debt can be one of the sustainable options for resolving the debt crisis. Insurance could cover debt repayment on behalf of the country during the period of climate crisis, helping them to focus their budget on relief and recovery, with the provision of a global fund to cover the insurance premiums.

Cite this publication

Bharadwaj, R., Mitchell, T. and Karthikeyan, N. (2023). Protecting against sovereign debt defaults under growing climate impacts: role for parametric insurance. IIED, London.
Available at https://www.iied.org/21426iied

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