This Interim Report, Tackling the Vicious Circle, sets out the triple crisis and explains the vicious circle. But it also argues that a 'virtuous circle' of sustainable growth is possible, if countries invest in low-carbon, climate-resilient and nature-positive development. This requires both strong domestic policies and a supportive international financial architecture.
Tackling the Vicious Circle focuses in particular on the critical role of the Debt Sustainability Frameworks (DSFs) used to assess debt by the IMF and World Bank. It argues that these do not at present fully take into account either the risks to growth from climate impacts and nature loss, or the economic benefits of climate adaptation and nature conservation. It makes a number of recommendations for their reform.