Glossary

Special Drawing Rights (SDRs)

SDRs are international reserve assets created by the IMF and allocated to its member countries according to their relative weight in the global economy. Although SDRs are not themselves a form of currency, they can be converted into money that could be used for climate finance.  

An allocation of $176 billion (worth over $230 billion today) in SDRs was agreed in 2009 in response to the financial crisis. Proponents of using SDRs forclimate finance suggest that a proportion of this total, or of a subsequent allocation, could be issued in the form of grants or as a means to underwrite climate-related bonds.Although the IMF is responsible for issuance, other bodies (such as the Green Climate Fund) might serve a similar function.

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