Debt crises in Global South debilitating fight against climate change: Report
The report by environmental think tank Centre for Science and Environment (CSE) come world leaders gather in Paris for a two-day summit to discuss reforms of the internationa financial system to better tackle poverty and climate change. comes as world leaders gather in Paris for a two-day summit to discuss reforms of the international financial system to better Poor and developing countries are also the hardest hit economically by climate disasters. For example: hurricane Maria that hit the Carribean environmental projects, and rely on foreign debt to support essential activities. The report said debt payments for low-income countries are at their highest since 1998, with an average external debt service payment of 16.3 per cent of government revenue in 2023. "Debt burden exceeds the annual cost of achieving the NDC for many low and middle-income countries; it is plausible that their climate ambition is being hindered by debt obligations," it said. Avantika Goswami, programme manager, climate change, CSE, said losses and damage due to climate change are mostly concentrated in developing countries. "These are also the countries that need finance for the climate transition to help them develop, without adding significantly to the stock of greenhouse emissions." "In the 2011-20 period, only about 5 per cent was given as grants and the rest were loans or equity. It is then no surprise that what is termed as climate finance is not going to the countries where it is needed the most," she said. Seventy-five per cent of all the climate finance in the decade 2011–2020 was concentrated in North America, western Europe, East Asia and the Pacific, primarily led by China. Regions where the majority of low and middle-income countries are located received less than 25 per cent of climate finance flows, the CSE report says, citing data from Climate Policy Initiative (CPI), a San Francisco-based independent climate policy organisation. tackle poverty and climate change. The report titled 'Beyond climate finance' argues that historical inequalities have made developing countries dependent on imports of food, energy, and goods. High debts have limited their capabilities to spend on development and climate. Sunita Narain, director general, CSE said most of the money given is notfree or cheap - it's given as loans or investments instead of grants, which mean ..
