Nature-related risks can affect sovereign debt sustainability directly through their impact on productive capacity and indirectly via the fiscal balance, the external balance, and financing conditions. Nonetheless, nature-related risks are not yet systematically operationalized within the IMF–World Bank Low-Income Country Debt Sustainability Framework (LIC-DSF). This pa per develops a DSF-compatible framework linking economic dependence on nature, the state of natural capital, socio-economic vulnerability, and environmental hazards to a set of macro- fiscal transmission mechanisms […]