Factsheet: Debt’s Climate Link

July 15, 2025

The Global South has contributed the least to the climate crisis but bears its harshest impacts. Climate finance remains inadequate, while sovereign debt burdens rise, limiting the ability of the Global South to respond to its developmental and climate needs. As these twin crises converge, this factsheet highlights the urgent need for equitable climate action and fair, systemic reform of the global financial architecture, particularly on sovereign debt. Addressing both crises together is essential to ensure that vulnerable countries are not left behind in the transition to a climate-resilient future and sustainable development.