A broader list of countries affected by natural disasters should be able to pause their debt payments, under a scheme drawn up by international financial institutions including the IMF, World Bank and private sector lenders.

Vulnerable countries will be able to add climate resilient debt clauses in to future bonds they offer on international markets, using new measures published by the International Capital Market Association. If defined trigger events occur, such as droughts, earthquakes, floods and hurricanes, nations should be able to defer payments for a maximum of two years, freeing up funds for disaster relief.

The measures, announced at the COP27 summit in Egypt on Wednesday, come in the wake of highly indebted, climate-affected countries like Pakistan struggling to keep up with their debt obligations.