Tackling the Triple Crisis of Debt, Climate, and Development

Veranstaltungsart
High-level seminar in preparation of the EU-AU Summit

Ort / Datum
Brussels, 02.10.2025

Veranstalter

Heinrich-Böll-Stiftung on behalf of the Debt Relief for a Green and Inclusive Recovery (DRGR) Project, Caritas Africa, Caritas Europa, German Institute of Development and Sustainability (IDOS), Misereor, European Think Tank Group (ETTG)

Many emerging and developing economies, particularly in Africa, face severe debt distress, limiting their ability to invest in climate action and human development to meet the SDGs. The G20 Common Framework has seen limited uptake, due to slow processes and minimal relief. As a result, debt-burdened governments avoid using it, resorting to harsh spending cuts—even in crucial areas like health, education, and climate adaptation. This traps them in a cycle of low growth, climate vulnerability and worsening public finances, while austerity fuels social unrest and political instability.

Meanwhile, sovereign debt has become a key global issue. The African Union held its first continental debt conference, producing the Lomé Declaration, which calls for African-led solutions. Internationally, the Seville Financing for Development Conference (FfD4) and South Africa’s G20 Presidency have both emphasized fairer debt systems and sustainable financing. These efforts signal growing political momentum to resolve debt distress and unlock resources that are key for inclusive, sustainable development, especially in the changing funding landscape for development assistance.

In the run-up to the AU-EU summit in Luanda, this event will highlight the economic and public finance situation of African economies and consider options for new initiatives to address the debt crisis. It will address the following questions:

  • What is the sovereign debt situation for African economies?
  • What are the main points of convergence of recent high level proposals like the FfD4 outcome document, Jubilee Debt Report, the Cape Town Declaration of the African Leaders Debt Relief Initiative and the Lomé Declaration of the AU?
  • What is the case for a concerted debt initiative that links debt relief with policy reforms and investments in SDGs and climate action?
  • How could AU and EU work together to advance debt sustainability for African countries?

Programme

Welcome remarks

  • Sarah Ribbert, Senior Programme Officer - Debt and Green Transformation, Heinrich-Böll-Stiftung

Keynotes by:

  • H.E. Nana Akufo-Addo, former President of Ghana, African Leaders Debt Relief Initiative

Setting the scene: The worsening sovereign debt situation across African countries; the vicious circle of debt, climate and underdevelopment; and geopolitical implications

  • Ulrich Volz, Professor of Economics and Director of the Centre for Sustainable Finance at SOAS, University of London & Senior Research Fellow at the German Institute of Development and Sustainability, Co-Chair Debt Relief for Green and Inclusive Recovery

Panel discussion

  • Marit Maij, MEP, S&D Group
  • Magnus Guldberg, Secretary of Embassy, Africa Relations, Permanent Representation of Denmark to the EU
  • Ulrich Volz, Professor of Economics and Director of the Centre for Sustainable Finance at SOAS, University of London & Senior Research Fellow at the German Institute of Development and Sustainability
  • Wesley Chibamba, Caritas Africa (online)

Moderator

  • San Bilal, Executive Director, European Centre for Development Policy Management (ECDPM) & Board Member, European Think Tanks Group (ETTG)

Hinweis

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