About this session
This session will explore the relationship between trade, debt, and finance in support of climate action and climate-resilient development.
It will discuss options to connect the dots between these different dimensions and foster cooperative and integrated approaches across international processes and policy agendas, drawing out specific implications for trade cooperation.
The dialogue will take place in a “brainstorming mode” and will provide an opportunity for an in-depth discussion and mapping of key topics for attention, including on how international cooperation can:
(i) Enhance coherence between trade, debt, finance, and investment policies and instruments to support climate action and climate-resilient development.
(ii) Facilitate access to sustainable finance for developing countries in support of climate-aligned trade and competitiveness, and climate-resilient development.
(iii) Support debt relief and restructuring mechanisms, innovative financing instruments (such as debt-for-climate swaps and sustainability-linked bonds), and strategies to de-risk and incentivize investment to accelerate the transition to sustainable, net-zero, and climate-resilient production and trade.
(iv) Address specific challenges such as balance of payments and debt crises arising from recurring climate shocks on the economies and trade of climate-vulnerable economies, aligning export finance with net zero goals (e.g. net zero export credit), and boosting fiscal space to pursue climate-aligned and climate-resilient development.
(v) Strengthen transparency and coordination between governance processes, institutions, and initiatives (such as the Bridgetown Initiative) at the nexus of trade, climate, debt, investment, and finance.