The GSDR published a playbook for debtor countries who are interested in debt restructuring.
IMF Managing Director stated that the IMF needs to be more active in supporting debt restructuring efforts, including with TA for countries in extreme debt distress.
Subsidy Reform
Domestic Mobilization
MDBs develop guidance to develop a national phase-out strategy.
Guarantees
Private Finance
Guarantees are supported as a key financing tool, with DFIs announcing plans to increase both the volume of guarantees and improve their ease of use.
Domestic Financial Market Development
Domestic Mobilization
World Bank and IMF work on a joint report on the current state of financial market development in EMDEs identifying policy recommendations for strengthening local financial infrastructure.
Mitigating Currency Risk
Private Finance
Make local currency (actual or synthetic) a default option for all MDB, public development banks and bilateral loans.
Taxonomies, Standardization, and Disclosure
Private Finance
Conversations on how regional MDBs can both support and harmonize national taxonomies are continued, with active input from governments and national development banks.
A World Bank committee to examine potential standardization is announced.
Climate-Resilient Debt Clauses, and Pre-Emptive Reprofiling
Fiscal Space
Four to five major commercial banks announce that they will offer no- or low-cost natural disaster and pandemic clauses in sovereign debt instruments and ensure new MVP (majority voting provisions) clauses in all syndicated loans to sovereigns.
Standardization, Data-Sharing, and Transparency
MDB Reform
The World Bank solicited feedback on recent WB reports that use GEMS data to provide aggregated information on default and recovery statistics, as well as on investor perceptions and market demand.
Transition Finance
Private Finance
MDBs take a lead on defining transition finance and exploring strategies for scaling transition finance.
Project Preparation and Business Development Facilities
Private Finance
MDBs and VCEFs start dialogues on aligning project preparation frameworks and de-risking mechanisms.
Mobilizing Private Adaptation Investment
Private Finance
MDBs host dialogues on standardizing adaptation finance taxonomies to improve private sector reporting.
Shifting Insurance Models
Private Finance
MDBs begin discussions on climate risk pricing and insurance market reforms, with a focus on regulatory barriers and cost escalation.
Mitigating Currency Risk
Private Finance
Make local currency (actual or synthetic) a default option for all MDBs, public development banks, and bilateral loans.
Taxonomies, Standardization, and Disclosure
Private Finance
MDBs begin discussion to introduce a common reporting framework, enhancing transparency on definitions, climate finance instruments, and success metrics.
Monetary Policy, Financial Regulation, and Supervision
Private Finance
At least 5 central banks announce frameworks for adjusting monetary policy tools to better account for climate risks.
Credit Rating Agency Cooperation
MDB Reform
MDBs and leading CRAs met for the fifth iteration of their roundtable, with updates on progress against the CAF recommendations, on the GEMs database, and from CRAs on updating credit rating criteria.
MDB reform mandates
MDB Reform
MDBs review progress on incorporating climate and global challenges into their mandates, highlighting challenges and opportunities for increased climate finance flows.
Fiscal reforms and regulations
Domestic Mobilization
MDBs discuss the progress of the JDRMI, with policy recommendations on further strengthening domestic resource mobilization for climate finance.
WBG/IMF Spring Meetings 2025 | Climate Finance Reform Compass