How does a country deal with climate disasters when it’s drowning in debt? Especially not when a global pandemic clobbers its economy. Vastly different countries, they are among dozens of nations at the crossroads of two mounting global crises that are drawing the attention of international financial institutions: climate change and debt. They face staggering climate risks, too. The combination of debt, climate change and environmental degradation “represents a systemic risk to the global economy that may trigger a cycle that depresses revenues, increases spending and exacerbates climate and nature vulnerabilities,” according to a new assessment by the World Bank, International Monetary Fund and others, which was seen by The Times.

Source: International New York Times April 07, 2021 09:00 UTC