Climate change, debt and COVID-19
This study provides an analysis of the linkages between multi-hazard exposure, lack of resilience, resulting disaster risk with related loss and damage, sovereign debt risks, and the lack of investment into resilience building. The COVID-19 pandemic has come on top of the climate crisis, the existential threat of our time. Debt is pushed to new heights at a moment when debt levels were already historically high. This triple climate change, debt and COVID-19 crisis has catalysed a situation where vulnerable nations are being squeezed between financial, economic, climate and health risks. Neither can they afford huge investments in recovery programs, nor can they invest in resilience at the levels required to reduce their future risks. As a result, not only sovereign debt but also climate-induced loss and damage will further rise, with vulnerable frontline communities paying the highest price.