Climate Resilient debt Clauses and Beyond – providing breathing space in sovereign borrowing

The Roundtable on Climate Resilient Debt Clauses (CRDCs) and Beyond, held in Madrid on the 2nd of June 2025, brought together country representatives, bilateral and private creditors, Multilateral Development Banks (MDBs), and other stakeholders, including Credit Rating Agencies and civil society representatives, to build shared understanding around CRDCs and broader Debt Pause Clauses and advance the implementation of these clauses across the capital stack of borrowing countries.

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The event, organized by the Sustainable Sovereign Debt Hub (SSDH) together with the Ministry of Economy, Trade and Business of Spain, the Climate Emergency Collaboration Group (CECG), the Children’s Investment Fund Foundation (CIFF), aimed to foster robust dialogue and galvanize international support for expanding the use of CRDCs or broader Debt Pause Clauses. Insights from the Roundtable are expected to inform global policy on scaling Debt Pause Clauses and contribute to the Financing for Development Conference.

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Objectives

▪ Take stock of the current toolkit of Debt Pause Clauses available to eligible borrowers from official, multilateral and private creditors;

▪ Identify strategies to expand the adoption of Debt Pause Clauses across all creditor groups, ensuring alignment between different creditor approaches;

▪ Mobilize global support for Debt Pause Clauses, particularly in view of the 4th International Conference on Financing for Development.

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