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My word is my bond: linking sovereign debt with national sustainability commitments
The global COVID-19 pandemic has caused millions of deaths and the greatest global economic downturn in nearly a century. Public debt increased by $8.5 trillion in 2020, up to September, including by $1.4 trillion in emerging markets. At the same time, unprecedented levels of investment will be needed to fund COVID-19 stimulus and relief packages, as well as to address the challenges posed by climate change and the degradation of ecosystems that regulate the air, water and soil on which we all depend. In this context, policy makers, the private sector, and investors are asking whether the solutions to these challenges can be linked. These connections are, in fact, already being made in the financial market.