This project directly aligns with SUN’s mission to advance nature-positive economic reforms in Emerging Markets and Developing Economies (EMDEs), where climate change and natural capital depletion are driving financial and social instability. Climate-vulnerable EMDEs are already experiencing severe economic losses from extreme weather events, with impacts expected to worsen in the coming years.
To address this, the project proposes integrating climate adaptation and natural capital into macroeconomic frameworks—starting with the IMF’s Debt Sustainability Analysis (DSA) and GDP growth models. These frameworks shape economic policymaking in EMDEs and influence sovereign credit ratings. By adapting them to reflect the economic benefits of climate adaptation and nature conservation, the project seeks to create strong incentives for sustainable investments and resilience-building measures.
The initiative has already gained traction within the macroeconomics community, with growing recognition of the need for reform. Building on this momentum, the project will work to integrate nature-based considerations into financial decision-making at both national and international levels, supporting EMDEs in aligning their economic policies with sustainable development goals.