The Climate Debt Risk Index 2024 (CDRI), introduced by Change Initiative (CI), calls for a complete overhaul of the global climate finance framework. The report advocates for grant-based financing, 100% debt relief, and a nature-based economy as essential measures to combat escalating climate debt burdens.
The CDRI, based on an analysis of 20 vulnerable Least Developed Countries (LDCs), uncovers alarming trends that threaten equity, justice, and sustainable development in climate finance.
Countries such as Mozambique, Madagascar, Myanmar, and Sri Lanka rank among the highest at risk, with Madagascar's Climate Debt Risk Index projected to reach 81.41 by 2030.
The study reveals that total climate debt for the selected 20 LDCs peaked at $2.73 billion in 2014 and, despite fluctuations, remains significant. The overall climate debt burden has risen 24-fold, from $0.88 billion in 2009 to $21.25 billion in 2022.
Among LDCs categorized as "High Risk," Bangladesh and Malawi are experiencing rising Climate Debt Risk Index (CDRI) scores, signaling worsening fiscal vulnerability.
Bangladesh faces a disproportionate per capita climate debt burden of $79.61, despite its heightened vulnerability to climate impacts. Its Climate Risk Index (CRI) score of 28.33 further emphasizes the country's exposure to climate-induced challenges.
