Commonwealth Multilateral Debt Swap for Climate Change Adaptation and Mitigation Proposal: An Exposition of the Operational Features

This paper discusses the technical details of the Commonwealth proposal for a Multilateral Debt Swap for Climate Action, something that could see small states benefit from improved debt management, climate resilience and possibly debt relief. It is geared towards senior technical personnel, both in Commonwealth member governments as well as in IFIs. It provides the definitions (section 2); main assumptions/elements underpinning the Commonwealth’s thinking (section 3); the detailed mechanics of the proposal using a funds-flow diagram and three scenarios (section 4); benefits of the proposal to prospective climate finance providers (section 5); and some key issues (section 6).