Since we are no longer able to avoid climate change, resiliance is the new plan. The IMF defines resilience investment as
- forward-looking spending on structural, social, and financial measures—such as climate-resilient infrastructure, pandemic preparedness, and economic diversification—to limit the damage of natural disasters and external shocks, thereby protecting long-term growth and debt sustainability*
The IMF analyzes resilience debt differently than other debt, acknowledging that resilience investment can improve long term economic stability. IMF resilience loans have longer maturity times, 20 years vs. 4-10 years, lower subsidized interest rates, and are considered “below the line” financing, whatever that means.
Cleaning your gutters before an El-Niño is cheap resilience investment.